4-Star Stocks Poised to Pop: ONEOK
By
Brian D. Pacampara
November 6, 2009
|
Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas distributor ONEOK (NYSE: OKE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at ONEOK's business and see what CAPS investors are saying about the stock right now.
ONEOK facts
|
Headquarters (Founded)
|
Tulsa, Okla. (1906)
|
|
Market Cap
|
$4 billion
|
|
Industry
|
Gas utilities
|
|
Trailing-12-Month Revenue
|
$10.23 billion
|
|
Management
|
CEO John Gibson (since 2007) CFO Curtis Dinan (since 2007)
|
|
Return on Equity (Average, Past 5 Years)
|
17.9%
|
|
Dividend Yield
|
4.6%
|
|
Cash / Debt
|
$52.2 million / $5.4 billion
|
|
Competitors
|
Enterprise Products Partners, L.P. (NYSE: EPD) PG & E (NYSE: PCG)
|
|
CAPS Members Bullish on OKE Also Bullish on
|
General Electric (NYSE: GE) Altria (NYSE: MO)
|
|
CAPS Members Bearish on OKE Also Bearish on
|
Omniture (Nasdaq: OMTR)
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97.5% of the 364 members who have rated ONEOK believe the stock will outperform the S&P 500 going forward. These bulls include All-Star theron4longan, who is ranked in the top 11% of our community, and SolitaireOne.
Early this year, theron4longan tapped the stock as a natural income opportunity: "[R]egulated industry with steady dividends and almost 50% ownership in [ONEOK Partners, L.P. (NYSE: OKS)]. Natural gas will be with us in one form or other over my lifetime."
In a pitch from last month, SolitaireOne also encouraged Fools to get paid for passing gas:
[ONEOK] continues to see nice growth and a solid dividend (currently paying over 4.5% at this level). The real "value" here in my opinion, is in the future of servicing & transporting their product via its extensive Mid-West pipeline system. Another harsh winter for Northern/NE regions and increased heating costs should prove profitable for this segment. Additionally, as the push towards the US's need for energy independence grows, I feel that [ONEOK] will be a strong player.
What do you think about ONEOK, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.