oil prices

NEWELL RUBBERMAID INC. $18 (New York symbol NWL; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 289.9 million; Market cap: $5.2 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.2%; TSINetwork Rating: Average; www.newellrubbermaid.com) makes plastic storage bins, tools, window blinds, pens and a number of other household items. Its top brands include Rubbermaid, Sharpie, Paper Mate, Parker, Graco, Irwin, Waterman and Levolor.

The company has three divisions: Newell Consumer (which supplies 50% of Newell’s sales and 45% of its earnings); Newell Professional (35%, 40%) and Baby and Parenting (15%, 15%). Wal-Mart accounted for 11.0% of Newell’s sales in 2011.

The company’s sales rose 1.0%, from $6.4 billion in 2007 to $6.5 billion in 2008, but the recession lowered its sales by 13.8%, to $5.6 billion, in 2009. Sales rebounded by 3.3%, to $5.8 billion, in 2010, and climbed to $5.9 billion in 2011.

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PENGROWTH ENERGY CORP. $8.41 (Toronto symbol PGF; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 364.5 million; Market cap: $3.1 billion; Price-to sales ratio: 1.9; Dividend yield: 10.0%; TSINetwork Rating: Average; www.pengrowth.com) reported that its daily production rose 2.7% in the three months ended March 31, 2012, to 75,618 barrels of oil equivalent from 73,634 a year ago. Because of depressed natural gas prices, the company is shifting its focus to oil, which accounted for 77% of its production compared with 61% a year earlier. Even with the higher production, weak gas prices and higher royalties cut Pengrowth’s cash flow by 22.6% in the quarter, to $113.6 million from $146.8 million a year earlier. Cash flow per share fell 31.1%, to $0.31 from $0.45, on more shares outstanding. However, the company’s high-quality western Canadian properties and its upcoming all-stock purchase of NAL Energy (Toronto symbol NAE) should let it take better advantage of high oil prices....

THE WESTAIM CORP., $0.73, Toronto symbol WED, owns Jevco Insurance Co., which sells insurance to high-risk drivers, as well as owners of motorcycles, snowmobiles and recreational vehicles. Jevco operates in Ontario, Quebec and Alberta. Westaim bought Jevco for $264.2 million in March 2010. Westaim jumped 9% this week after it agreed to sell Jevco to Intact Financial Corp. (Toronto symbol IFC); Intact is a recommendation of Stock Pickers Digest, our newsletter that focuses on aggressive investing. Westaim will receive $530 million when the sale closes in the fall of 2012. That’s equal to 1.3 times its market cap of $423.7 million....

Celtic Exploration, $14.48, symbol CLT on Toronto (Shares outstanding: 104.9 million; Market cap: $1.5 billion; www.celticex.com), is an Alberta-based oil and gas explorer and producer. Celtic’s shares are down almost 56% from $27.08 in November 2011. The shares have dropped along with many other energy stocks. In addition, Celtic’s production is about 77% natural gas and 23% oil. That high gas component has hurt the company as gas prices have fallen; they recently dropped below $2 U.S. per million British thermal units (BTUs) for the first time in more than a decade....

PRECISION DRILLING CORP. $8.91 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 276.1 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.3; No dividends paid since February 2009; TSINetwork Rating: Extra Risk; www.precisiondrilling.com)
provides contract drilling services to land-based oil and gas producers, mainly in North America. It had 337 rigs in service at the end of 2011.

The company continues to gain as oil producers step up their drilling activity to take advantage of rising oil prices. In 2011, Precision’s revenue rose 36.5%, to $1.95 billion from $1.4 billion in 2010. Earnings soared 344.4%, to $193.5 million, or $0.67 a share, from $43.5 million, or $0.15 a share.

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SASOL LTD. (ADR) $46.49 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs outstanding: 641.4 million; Market cap: $29.9 billion; Dividend yield: 5.3%) is a South Africa-based company that has developed a technology to convert coal and natural gas into motor fuels. In the six months ended December 31, 2011, Sasol’s revenue rose 23.9%, to $11.0 billion from $8.9 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 81.8%, to $3.04 from $1.67. Higher oil prices were the main reason for the gains. A stronger U.S. dollar against the South African rand also pushed up the value of sales outside South Africa. Last year, Sasol paid $2.2 billion for a 50% interest in two major shale gas properties held by Talisman Energy (symbol TLM on Toronto) in the Montney Basin region of western Alberta and northeastern B.C....

SASOL LTD. (ADR), $45.65, symbol SSL on New York, has developed a technology to convert coal and natural gas into motor fuels. The company is now the world’s largest producer of fuel from coal at its facility in Secunda, South Africa. Sasol also produces synthetic fuels from natural gas at plants in Qatar and Nigeria. In addition, the company has substantial chemical production interests, and produces oil and gas in Africa. Sasol is also South Africa’s third-largest coal producer. In the six months ended December 31, 2011, Sasol’s revenue rose 23.9%, to $11.0 billion from $8.9 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 81.8%, to $3.04 from $1.67. Higher oil prices were the main reason for the gains. A stronger U.S. dollar against the South African rand also pushed up the value of sales outside South Africa....

Companies that supply equipment and services to oil and gas explorers give investors another way to profit from rising oil prices. To cut your risk, stick with proven market leaders like Precision Drilling and ShawCor. PRECISION DRILLING CORP. $8.91 (Toronto symbol PD; Aggressive Growth Portfolio, Resource sector; Shares outstanding: 276.1 million; Market cap: $2.5 billion; Price-to-sales ratio: 1.3; No dividends paid since February 2009; TSINetwork Rating: Extra Risk; www.precisiondrilling.com) provides contract drilling services to land-based oil and gas producers, mainly in North America. It had 337 rigs in service at the end of 2011....

SASOL LTD. (ADR) $46.49 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs outstanding: 641.4 million; Market cap: $29.9 billion; Dividend yield: 5.3%) is a South Africa-based company that has developed a technology to convert coal and natural gas into motor fuels.

In the six months ended December 31, 2011, Sasol’s revenue rose 23.9%, to $11.0 billion from $8.9 billion a year earlier (all figures in U.S. dollars). Earnings per ADR rose 81.8%, to $3.04 from $1.67. Higher oil prices were the main reason for the gains. A stronger U.S. dollar against the South African rand also pushed up the value of sales outside South Africa.

Last year, Sasol paid $2.2 billion for a 50% interest in two major shale gas properties held by Talisman Energy (symbol TLM on Toronto) in the Montney Basin region of western Alberta and northeastern B.C.

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PLEASE NOTE: Our next Hotline will go out on Friday, April 13, 2012. NISSAN MOTOR CO., $20.95, symbol NSANY on Nasdaq, reported record U.S. sales in March. Overall, the company sold 136,317 cars and trucks in the U.S. during the month. That’s up 12.5% from 121,141 vehicles in March 2011. The Nissan division’s sales jumped 14.8%, to a record 126,132 vehicles. Infiniti sales rose 9.8%, to 10,185 vehicles....