This Oil Stock Looks Very Cheap

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Oil was up big last week and many oil stocks responded. Both ExxonMobil and Chevron, the two big boys of oil in the Dow Jones Industrial Average, moved up nicely on the day following the 9% rise in oil prices. SandRidge Energy, a leading contender for the next energy stock to enter John and David's real-money 10-Bagger portfolio, also had a big day. John and David think that Denbury Resources in particular looks very attractive right now. The tertiary recovery specialist is priced for $55-$60 oil. That might be where we are headed in the short run. But over the next five years, oil will likely trade at much higher prices, and shareholders will be rewarded as a result given Denbury's low cost of extraction. That’s why John and David own shares and are considering buying more.

Energy stocks offer something for all types of investors. Some companies rise and fall with oil prices, while others provide more steady returns over the long haul. The Motley Fool has identified a company that will prosper for years to come. Read more about an energy stock set to soar in our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.

David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool owns shares of Denbury Resources and ExxonMobil. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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