Changes Made in 2013 Could Finally Start Paying Off for 2 Companies

This segment is from Thursday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Companies not treating investors to double digit percentage gains in 2013 really let shareholders down. The overall market soared, but Apache Corp (NYSE: APA  ) and Petrobras (NYSE: PBR  ) barely broke even and lost more than 30%, respectively. Will 2014 be any different? Motley Fool analyst Taylor Muckerman believes that it might given Apache's refocused efforts in the United States and Petrobras' activity in the pre-salt formation set to increase. All of this should help lead oil and natural gas production higher, hopefully followed closely by gains in the stock market. For more on this topic, tune in to the video below.

One thing that likely won't change? Our ongoing energy boom
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


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  • Report this Comment On January 08, 2014, at 11:38 AM, Alpha75 wrote:

    Taylor,

    I think you are right to point out that the poor shareholders' treatment at PBR is the main reason why this stock has fared so poorly - given its incredible potential following the massive onshore and offshore oil discoveries. This topic is now openly discussed at the Brazilian government level and if it confirmed that the foreign oil subsidies are going to be further decreased, this stock would explode toward Wall Street Target Price. As to the Fall Presidential Elections, I think they can only help the stock as any 'republican-like' menace to the current left-wing government will only encourage investors to buy-in. As a result I purchased PBR below $13, believing the risk/reward has now finally tilted to the reward side of the equation.

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