Right now, there going to take a hit with what is going on with Enron. But once the fall out and all the investigations are over, some of the smaller ones could stand to really benefit from all of this. When do you start getting in on these?
The key I think with the energy stocks is buy ones that actually own oil, not just broker the smaller companies assets. A lot of investors are going to skeptical of buying an oil company that just buys and sells on the market.
Commodity Houses are toast for the time being and will be undervalued for at leat 12 - 18 months. This will lead to several more mergers or dissolutions by parent companies down the line.
I'm buying stock in Purdue Farms. The Univ. Of Georgia has retrofitted boilers to heat the campus with Chicken Fat (oil).