Denbury Resources, Inc. (DNR) reported better-than-expected second-quarter 2008 recurring earnings of $0.57 per diluted share (our estimate was $0.43 per diluted share), compared to $0.22 per share in the prior-year period. We have adjusted the reported earnings of $0.45 per diluted share for non-cash charges of $0.12 per diluted share associated with the company s derivative contracts.

We upgraded shares to Buy from Hold last week following the stock’s roughly 35% pullback since mid-June. We believe that the recent weakness has made valuation very compelling for this niche exploration and production (E&P) name. The stock currently trades at a deep discount to our conservative net asset value (NAV) estimate, offering meaningful upside from current levels.

Denbury’s focus on crude oil extraction from mature fields using CO2 flooding techniques offers sustainable and cost effective production and reserve growth for many years to come. The company’s competitive edge in acquiring mature properties

Below is this week’s list; another week heavily dominated by energy names - natural gas and coal leading the way… as always

Market capitalization of $2B +
Average daily volume 100K+
Stock price $10+
Return past week 8%+

We own names in green; we have owned or discussed names in blue

Symbol
Company Name
% Price 1 Week

CLR
Continental Resources Ord Shs
21.3

WTI
W&T Offshore Inc
20.6

ARG
Airgas Inc
20.2

EAC
Encore Acquisition Co
19.0

GLBL
Global Industries Ltd
17.8

AU
AngloGold Ashanti ADR
17.5

CRK
Comstock Resources Inc
16.9

FTI
FMC Technologies Inc
16.5

ATVI
Activision Inc
16.5

OCR
Omnicare Ord Shs
15.9

PCX
Patriot Coal Corp
15.7

ANR
Alpha Natural Resources Inc
15.7

DRS
DRS Technologies Inc
15.6

OGZPY
Gazprom Rep 4 Ord Shs ADR
15.6

ME
Mariner Energy Ord Shs
15.3

NOV
National Oilwell …