5-Star Stocks Poised to Pop: Harvest Energy Trust

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian oil and natural gas trust Harvest Energy (NYSE: HTE  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Harvest Energy's business and see what CAPS investors are saying about the stock right now.

Harvest Energy facts

Headquarters (Founded)

Calgary, Canada (2002)

Market Cap

$1.3 billion

Industry

Oil and Gas Exploration & Production

TTM Revenue

$3.8 billion

Management

CEO John Zahary (since 2006)

CFO Robert Fotheringham (since 2006)

Return on Capital (average last three years)

5.8%

Current Dividend Yield

37.8%

Competitors

Imperial Oil (AMEX: IMO  ) ,

Pengrowth Energy Trust (NYSE: PGH  )

CAPS members bullish on HTE also bullish on

Penn West Energy Trust (NYSE: PWE  ) ,

Vale (NYSE: RIO  )

CAPS members bearish on HTE also bearish on

Provident Energy Trust (NYSE: PVX  ) ,

Cemex (NYSE: CX  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 702 of the 729 members who have rated Harvest Energy -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include aracer and fadiah, both of whom are ranked in the top 15% of our community.

Just last week, aracer kept the bullish case simple: "Good quality petrol and NG producer, with nice dividend, in Canadian dollars, at 52 week low. Good long term hold. Oil will go up again."

A pitch from fadiah one day later agrees, elaborating on the bullish features of Canadian royalty trusts as a whole:

I believe that Canadian Energy trusts are way beaten down, too much selling pressure from funds liquidating at any price to ease their liquidity shortages is the major cause of this drop. so if I buy now I will enjoy a very high yield plus an appreciation of commodity prices when all the hysteria that is invading this market will stop, also a back to normal currency rate between CAD and USD.

What do you think about Harvest Energy, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Cemex, which is a Motley Fool Global Gains and Stock Advisor pick. The Fool's disclosure policy always gets a perfect score.


Read/Post Comments (5) | Recommend This Article (14)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 30, 2008, at 9:43 AM, paultaut wrote:

    The listed facts on HTE list competitors.

    I submit there are no competitors, whatever the companies can produce is being produced. Unless, its the competition for room on the pipelines feeding the US or room in the export containerships. PGH is primarily NG, how does it compete with HTE's heavy oil? HTE meanwhile has a state of the art 110K+brl. per day refinery and some 60+ gas stations. The refinery is expected to increase capacity by 50%.

    PGH is building a pilot plant which will use steam rather than NG to free the oil. Will be a big plus for the future, both on a cost and environmental basis.

    Where is the perceived competition? Most likely what you have listed is individual favorites, not actual competitors.

    Go Hussein!

  • Report this Comment On October 30, 2008, at 3:20 PM, paultaut wrote:

    Ok, ok.

    When you list the: Competitors, the members Bullish and Bearish on various Companies wouldn't the Caps Rating on them be a useful tool also?

  • Report this Comment On October 31, 2008, at 12:07 AM, paultaut wrote:

    Sorry, my mistake.

  • Report this Comment On November 09, 2008, at 3:10 AM, bhakta wrote:

    I concur wth the author's comments. HTE is a tremendous value and income play at these rediculously low prices.

  • Report this Comment On November 13, 2008, at 9:20 PM, Groulx01 wrote:

    I have had this stock for over three years and have followed it closely. Sp,e points that are an excellant arguement to the upward potential of the company:

    HTE price potection plan (hedges) has 80% of there production locked in at $82 a barrel.

    The devalutation of the Canadian dollar to the US has increased increased the EPS. Conversly, when the dollar falls again oil will rise.

    HTE also locked in there downstream output(gas,diesal etc...) at June 2008 pricing until June of 2009. This takes effect in Jan 09.

    Even at a 16.00 per share price HTE still pays over a 10% dividend!

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