Gene Marcial, Business Week’s stock investing guru, highlighted the following stocks in the 6/9/08 issue:

1. Occidental Petroleum (OXY)

a. Smart-money investors regard as underpriced and underplayed.

b. Stock has the potential to hit 145 in three years.

c.  Average yearly earnings growth of 12%, a lofty return on total capital of 24% (with no debt), and an estimated 2008 price-earnings ratio of just 11.

d. The oil-and-gas producer operates mainly in the U.S. but also drills in Colombia, Ecuador, Qatar, and Yemen. Libya, after 20 years of isolation, in December started offering gas exploration contracts to foreign outfits, including OXY.

2.  NCI Building Systems (NCS)

a. It was at 52 a year ago, but some investors see a buying opportunity in the shares of this maker of such products as metal roof and wall systems for nonresidential buildings.

b. Some of NCI’s markets, such as mining, energy, agriculture, and infrastructure industries, are strong.

c. There is also speculation NCI could be takeover bait.

3. PPL (PPL)

a. A stodgy electric utility that provides power to customers in the U.S. and Britain, has branched out to what investors regard as a sexier business: solar energy.

b. The company will benefit from high oil prices and more stringent carbon emission restrictions.

Track Gene Marcial’s stock picks at:

http://www.trackthepros.com/categories.php?category_id=404