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UPYEARS
(MONEY Magazine) – Five months ago, economists predicted that shrinking oil supplies would force up prices to as much as $30 a barrel in five years (MONEY, April). After the oil shock, the six stocks our sources liked back then, all traded on the New York Stock Exchange, stood as tall as oil derricks. Here's what those stock pickers forecast now for their choices over 12 months, in order of profit potential: -- With extensive pipelines, Coastal (recently traded at $33.75), sales of $8.5 billion, will rise to $45. -- Demand for oil services will help keep $2.7 billion Baker Hughes ($32) on track to $40. -- Halliburton ($56), $6.6 billion, which uses computer programs that help locate oil reserves, can reach $70. -- Texaco ($62.75), $36.6 billion, will reach $75. -- Increasingly valuable domestic oil and natural gas reserves will push Oryx Energy, ($53), $1.7 billion, to $60. -- British Petroleum ($79.75), $50 billion, will get to $88 because of its potential for joint ventures in the U.S. and the Soviet Union. Are there any other values left? Analyst George Baker of Merrill Lynch points to natural gas as ''the big catchup area.'' He favors two NYSE producers, $24.5 billion Amoco ($56.75) and $9.5 billion Unocal ($31.50). |
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