Fool Radio Roundtable: 3 Stocks on Our Radar

Motley Fool Money is a one-hour weekly business radio show syndicated to radio stations across America. On our most recent show, host Chris Hill talked with our analysts about some stocks on their radar. You can catch this week's show online at motleyfoolmoney.com. In this lightly edited transcript, the guys share three stocks on their radar.

Chris Hill: Let's talk about the stocks that are on our radar, and Tim Hanson, we'll start with you.

Tim Hanson: You know, we talked about energy a little earlier in the show, and I have been looking at the energy sector recently. One company that has caught my eye that isn't a clear buy yet, but I'm certainly looking at, is Total (NYSE: TOT  ) , which is the French integrated energy giant. The reason I'm interested is because they have made sort of a very interesting bet on unconventional oil drilling, and that is to say, very deep water, and also in sort of more risky places politically like Africa and whatnot. So, they have a higher cost of extraction, but to the extent that oil prices stay at $80 or continue to rise, those wells are all going to be worth a lot of money to Total, and they have a big position in this part of the energy market that a lot of other companies don't have, which makes it very interesting going forward.

Hill: What is the ticker symbol?

Hanson: That is on the New York Stock Exchange, TOT, Total, often pronounced "total," but you need to use your smarmy European accent when saying it.

Hill: All right, James Early?

James Early: You know, Chris, I agree with Tim, that deepwater is the future of drilling, and Total is actually an Income Investor recommendation. I am going to give you one more, ironically based on deepwater drilling, and that is Chevron (NYSE: CVX  ) , a company I recommended a few months back, owing partly to a depressed stock price, thanks to this BP disaster, which looks to be on the mend, as Tim pointed out, and if this deepwater moratorium reverses, I think it is even better news for Chevron. It has a 3.6% yield. It's a strong, strong presence in deepwater, although be it domestic deepwater, 18% return on equity, 6.2% dividend growth year over year, and I believe it spends more money on eco-type-friendly projects than any other major oil company.

Hill: Joe Magyer?

Joe Magyer: Well, I know my heart is warmed to hear that about the eco-projects. (laughter)

Hanson: There's probably a pretty low bar there.

Early: Exactly.

Magyer: I was actually going to go with Exxon, but for the spirit of mixing it up for the listeners, I will go with Google (Nasdaq: GOOG  ) , which is a pretty big reversal. So I'm a value guy; I like cheap stocks, so it's kind of strange that I'm saying Google.

Hill: I was going to say, not only are you a value guy, you're a cheap person in general.

Magyer: Sure, sure. Thank you.

Early: I am looking at these striped pants that Joe is wearing. Did you get those on sale?

Magyar: I did, deep value.

Hanson: And that was a free shirt and free hat, is that right?

Early: And free iPad, actually. He told us the story, the iPad he got free.

Magyar: I don't even own my own shoes. So the Google story, it is what everyone thinks is this growth stock that doesn't have any sort of moat to it. This is a great business. It's got $30.5 billion in cash. They dominate Internet search. They have 98% of market share of mobile search, which is the next big frontier in computing. They get 2 billion page views a day on YouTube, which they are only just now beginning to monetize. It is crazy to think that YouTube is only five years old, but they are pulling in 2 billion page views a day. There is a lot of optionality there, a lot of room to run.

Joe Magyer , James Early, Tim Hanson, and Chris Hill may own stocks discussed during the course of the weekly radio show. To see the stocks they own, follow the links above to view their profiles.

Total and Chevron are Income Investor selections. Google is a Motley Fool Rule Breakers selection. The Fool owns shares of Google.  Try any of our Foolish newsletter services, free for 30 days. The Fool has a disclosure policy that's free, much like Joe's wardrobe.


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