Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas company Spectra Energy
With that in mind, let's take a closer look at Spectra Energy's business, and see what CAPS investors are saying about the stock right now.
Spectra Energy Stats:
Headquarters |
Houston, Texas (spun off, January 2007) |
Market cap | $17.74 billion |
Industry |
Oil & gas pipelines |
TTM revenue |
$4.95 billion |
Management |
CEO Fred Fowler |
TTM return on equity |
17.1% |
CAPS players bullish on SE also bullish on |
Chesapeake Energy |
CAPS players bearish on SE also bearish on |
The Home Depot |
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 204 of 207 of the All-Star players who have rated Spectra Energy -- some 98% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include breaktrack and jawong1032, both of whom are ranked in the top 10% of our community.
In March 2007, breaktrack highlighted Spectra as a special situation, writing:
This is a Duke Energy spinoff with many people from Duke going over to SE. They bring along much knowledge and expertise. Duke was always a good stock since I owned it and I expect the same from SE.
A pitch from jawong1032 later on in the month focused on the steady, cash-generating nature of Spectra's business model:
A natural gas play that is not levered to the price of natural gas. [Spectra Energy] stores and transports gas, and gets paid to do it whether the price of natural gas is $1.00 or $10.00. Natural gas usage is and will be on the rise. Watch for the company to seek additional storage capacity which in turn will generate more cash for the company. A nice dividend will help ease the waiting period.
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