HUDSON: The rise in pump prices has not derailed the strong stock rally since last October. In fact, the energy sector has been one of the hottest areas of the market. Tonight`s “Street Critique” guest is looking for more profits in energy. Hilary Kramer back with us, author of “The Little Book of Big Profits from Small Stocks.” Hilary with us tonight from the NASDAQ. Always great to see you, Miss Kramer. Are you buying at the top though if high prices get cured by perhaps lower demand?
HILARY KRAMER, AUTHOR, “THE LITTLE BOOK OF BIG PROFITS FROM SMALL STOCKS”: I`m not really worried about any slower demand. As far as I`m concerned the oil prices are going to continue to rise. Tom, the situation in the Middle East with Iran and then cutting off exports to France and to UK, concerns about Israel coming in and potentially trying to take out their areas of the nuclear development in Iran are very, very serious, weighing on the market. Oil stocks keep going up, but the other companies, that is a problem and it is a concern, the other sectors like
HUDSON: Absolutely and we`ve seen that turn around lately. Your choice in energy is the services company Occidental Petroleum (NYSE:OXY), OXY, otherwise known as OXY, its ticker symbol. It`s above $100 per share. What do you expect out of it?
KRAMER: At the very least Tom, I expect OXY in the $103 range to at least go back to its 52-week high of $117. You have a 2 percent dividend yield here, the really strong well managed diversified oil company with hundreds and hundreds of acres, especially in California, a stronghold in the (INAUDIBLE) basin area and it`s cheaper for OXY than it`s ever been before, on extraction. The technologies are really important as many of these companies are now drilling in areas where there is shale formation, which is really sedimentary rock and let`s just take a look at the Bakken
(ph) region. It`s incredible in North Dakota, with billions of barrels. It`s just a matter of reaching them and OXY has the resources.
HUDSON: Hilary, let me squeeze in a quick viewer question that wound up in our in box at email@example.com. Hank asks this question , I own Bank of America (NYSE:BAC). Do you still like BAC? It was back in November of last year you mentioned it was below six, tonight close to eight. Would you still put new money to work?
KRAMER: If you have a five-year time horizon, absolutely on Bank of America (NYSE:BAC). And the valuation is low at 8.8 times tangible book. But there`s a lot of overhang, even with some settlements behind Bank of America (NYSE:BAC). Don`t be there for the short term — long term.
HUDSON: Do you own OXY and B of A shares?
KRAMER: I own Bank of America (NYSE:BAC). I do not own Oxy.
HUDSON: You can email us your questions, firstname.lastname@example.org, the previously mentioned email address and our guest this evening on “Street Critique,” from the NASDAQ, Hilary Kramer. Thanks, Hilary.
KRAMER: Thanks, Tom.