not vested
Italian Stocks to Buy: Eni (E)
by Luca Mascaro
Eni SpA (ADR) (E) has the unfortunate pleasure of being a member of two hated groups — Italian stocks and oil producers. However, E stock deserves to be on any investor’s watch/buy list.
Eni is one of the largest integrated majors. Think Exxon Mobil Corporation (NYSE:XOM). And like XOM, E stock owns a vast range of energy projects across the up-, mid- and downstream sectors throughout the globe.
The vast bulk of its operations have focused on the Middle East, and some of its legacy fields in Libya are some of the largest in the world. These fields provide Eni with a steady dose of daily production and operating cash flows.
Meanwhile, E stock continues to explore and has become one of the best “finders” of new deposits among the majors. That includes its massive recent finds in Mozambique and its “supergiant” field in Egypt that could be home to a whopping 30 trillion cubic feet of gas. Those sorts of finds are great for the long term.
In the short term, profits have been lacking at Eni due to the downturn in energy prices.
But with energy prices starting to rise, ENI should start seeing its net income kick into high gear. And because of the recent problems with Italian stocks in general, they can buy those profits at a discount. E stock also sports a big 6% dividend.
Source: Investor Place