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5-Star Stocks Poised to Pop: Harvest Natural

Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas small-cap Harvest Natural Resources (NYSE: HNR  ) has earned a coveted five-star ranking.

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

Harvest Natural facts

Headquarters (founded)

Houston, Texas (1988)

Market Cap

$116.29 million

Industry

Oil and Gas Exploration and Production

Trailing-12-Month Cash on Hand and Total Debt

$97 million and $0

Management

CEO James Edmiston

CFO Stephen Haynes

Return on Capital (average, last five years)

5.3%

Competitors

BPZ Resources (NYSE: BPZ  )

Contango Oil & Gas (NYSE: MCF  )

CAPS members bullish on HNR also bullish on

Chesapeake Energy (NYSE: CHK  )

Freeport-McMoRan (NYSE: FCX  )

General Electric (NYSE: GE  )

CAPS members bearish on HNR also bearish on

Citigroup (NYSE: C  )

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, 413 of the 433 members who have rated Harvest Natural -- or 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include Melaschasm and All-Star ACMIP, who is ranked in the top 0.5% of our community.

In late March, Melaschasm helped calm our community's concerns over Harvest's heavy Venezuelan exposure: "The large amount of cash on hand minimizes potential losses, if some of their oil fields are nationalized. The upside potential if oil prices go up, makes this a good way to play the oil market."

In a pitch from last month, ACMIP also highlights Harvest as a natural low-risk, high-reward situation:

At a meaningful discount to the value of [Harvest Natural's] cash (which notably is held in the US) and non-Venezualen assets, who cares what Chavez does? The company is debt free, should be able to operate profitably in today's low price environment, and is so cheap that even in the most draconian outcomes I can imagine I should still make money. Outperform.

What do you think about Harvest Natural, or any other stock for that matter? Do your own due diligence and then make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value recommendation. The Fool's disclosure policy always gets a perfect score.


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 April 21, 2009, at 2:43 AM, CanadaDreamer wrote:

    HNR has been a value play for years and have been out of favor since their only real asset are fields in Ven. They are slowly "harvesting" their cash out of Ven to other plays around the world. However, they've seemingly taken a scatter shot approach to diversify. In the last few years, they've got involved in Gabon (West Africa), Oman (ME), US Gulf Coast, and Indonesia - all are early stage, although they are just about to start drilling on some plays with potential to move the needle and excite the market.

    Now that they are thru the renegotiation with Chavez (hopefully for the last time), they are starting to rebuild production again.

    I've been following HNR for years but never have pulled the trigger - never had a sufficient comfort level to invest.

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DocumentId: 878474, ~/Articles/ArticleHandler.aspx, 5/27/2012 12:34:02 PM

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Related Tickers

5/25/2012 4:01 PM
HNR $5.12 Down -0.03 -0.58%
Harvest Natural Re… CAPS Rating: ****
FCX $32.41 Down -0.16 -0.49%
Freeport-McMoRan C… CAPS Rating: ****
GE $19.20 Down -0.05 -0.26%
General Electric C… CAPS Rating: ****
C $26.47 Down -0.19 -0.71%
Citigroup Inc CAPS Rating: ***
CHK $15.81 Up +0.23 +1.48%
Chesapeake Energy… CAPS Rating: ****

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