Entries for this week’s Stock Picking Tournament are in. If you forgot to place your bet, don’t worry – you can enter again via the Thursday newsletter.

Every week TheBull is handing out a $500 cheque to the best stock picker. Last week we looked at stocks in the energy sector that were trading above $0.50 a share. The winning stock is the one that posts the biggest percentage gain over the following week.

A hefty 47% of readers chose the following five stocks.

 Rank   Name  %  votes
 1  Bow Energy (BOW)  14%
 2  Eastern Star Gas (ESG)  11%
 3  Paladin (PDN)  8%
 4  Beach Petroleum (BPT)  7%
 5  Linc Energy (LNC)  7%


The reasons for selecting a particular energy stock varied between readers – everything from potential takeover targets, balance sheet strength, technical indicators such as MACD to less analytical reasons, “I’m picking this like a sheila picks a racehorse – I like the name!!!”

Bow Energy – 14%

“Expect the stock to keep moving upwards in response to continued good news from the Don Juan Coal Seam Gas (CSG) Project situated north of Roma in Queensland.”

“Lots of interest for this company. They have great announcement. Also by looking on the technical analysis
everything suggest the price will reach new highs.”
“…reason will be cashed up after raising funds to prove up reserves. After the battle for PES,  Bow could possibly be the next target of interest as companies jockey to increase csg reserves for lng production.”
“Strong recent performer, capitalising on need for oil, exhibiting an exceptionally strong buyer’s market.”
“Bow are currently proving up there reserves and have scope for huge increases, given the current consolidation in the CSG industry it is only a matter of time before this little gem is swallowed up by the big players. The Gladstone liquefaction plant will be a springboard for all these players in a world hungry for energy security.”
“…capital raising in process to enable proving up gas reserves in a highly energised takeover market to consolidate its position in up and coming market.”

“Parabolic Trend… Indicaders  MACD and STOCHASTIC both positive”

Eastern Star Gas – 11%

“I already own some ESG shares and they have been going well lately. They are now in a strong up trend with increasing volume. Price has broken December 30 2008 resistance level of 70 cents.”

“Weekly charts: Higher highs and higher lows. Rising momentum indicators. Strongly trending. Daily charts: Rising momentum indicators, increasing volume, increasing money flow. Strong market depth. Bulls in control.”
“Potential takever target and was today admitted to the ASX300. Fund Managers who align their portfolios to the ASX Indices (i.e top 100,200,300) will start buying the stock, therefore pushing the price up”
“My reason for this pick is a chart pattern (reverse head @ shoulders).”
“It has been rising steadily while everything else has fallen. It is going into the ASX top 200, so some fund managers will have to buy into it and is a bit more thinly traded than some of the others in the sector. When it hits the ASX 200 more traders & potential takeover companies will notice it. It has the rights to a lot of good resources.”
“Chosen because the chart looks terrific, money flow, MACD, commodity indicators all look positive. It is a standout as a takeover target, it has the price momentum (short term), energy sector and LNG are due for a bit of a recovery (short term), lastly the market overall could come in for a bear market rally.”

“Reason – technically strong stock with the buyers in control – and have been for some time.”
“ESG is my pick because it is into coal seam gas which is topical, and it has recently been included into the S & P/ASX 200.”
“Confirm huge potential of Bohena coast seam gas project. CSG sector continues to run hot with M&A activity supporting share prices in an otherwise lacklustre market.”
“Confirm huge potential of Bohena coast seam gas project. CSG sector continues to run hot with M&A activity supporting share prices in an otherwise lacklustre market.”
Paladin – 8%

“I hold them in my portfolio. Recent share price weakness – due for a rebound. Positive recent exploration news.”
“Paladin’s overall Balance Sheet position remains sound and operational performance is good.  They are maintaining an aggressive exploration and stgelopment programme.  Paladin has attracted increased investor support rallying from a low of $1.68 in Nov08 to the recent high of $3.36.  A sign of upward momentum!”

“I believe uranium has an important part to play as an energy of the future. PDN is a stock traded with a lot of volume and It has hovered around the $2.80 ish range before. A few good days on the dow and I think we should see a stock price close to my target.”

“I’m picking this like a sheila picks a racehorse – I like the name!!!”
“Paladin should hit $3.10 by next Friday as it has trended down from $3.00 last week, turning around today. I simply like this stock & have made good money from it previously.”
“Paladin Energy is the goods as it now has the Langer Heinrich Uranium Mine operational with a targeted annual production of 2.6 million pounds U3O8 and a minimum project life on current reserves of 17 years. With the world looking for cleaner energy sources, Paladin’s increased production capacity makes it a viable investment as a short term solution for a move away from coal fired power generation.”
“It has key JORC-compliant uranium projects in Australia and Africa and has fifteen years experience in the Energy sector. Approx Productions: Langer Heinrich at 6m pounds p.a..Malawi at 3.3m pounds p.a”

Beach Petroleum – 7%

“This is a stock I have personally invested in. I am a very small investor and still learning.  I feel this company share price has been hammered too much as the company is doing okay and the last profit report was pretty good, which you can’t say about too many companies at the moment. It would be very reassuring to see at least one of my stocks gain some ground in the near future before I start sinking into a great depression myself.”
“There has been some good press lately on BPT and from their recent charts it seems that there is some resistance to falling below their current price of .78. With recent highs of around the .84 this would seem to me to offer pretty good potential to have solid gains this week.”

“My opinion purely from a charting perspective…Since the most recent low of Feb 6, Beach Petroleum has made a series of strong upward moves. The 10 day moving average  has just crossed the 30 day moving average suggesting strength.  A strong base has formed around the 70 cent mark, so any downside should be limited. Weekly chart also shows a divergence between prices and the weekly MACD, suggesting a possible upward move. Target price is in line with Resistance formed on Jan 8 and 9.”
“Recent profit upside and punting on Oil price to go up next week”
“It has had a relatively stable dividend for the last 6 years for its sector and has a low gearing level of 22%.”
“The Financial Crisis has caused the market to over look the strong financial figures for “Beach Petroleum Limited” They recently announced a 41% increase in revenue and a 117% in profit. Combine those figures with China’s stimulus package and a possible new government grant and BPT look in good position to ride out the storm. they also have good projects ahead of them.”
Linc Energy – 7%

“I think LNC is currently way undervalued considering their high quality coal assets and the potential for their UCG technologies.

The current share price is not a true reflection of its worth due to short selling, high speculation and subdued investor confidence of late.”
“Linc is a cutting edge energy coy, which is sitting on some great projects, just waiting for global oil demand to increase. Should oil return to the hefty $160 per barrel days, this coy will be in the ASX 200.”
“I think LNC will be the big winner, the company is waiting to complete a large sale of coal assets to china. If this ann. is made this week, the SP will rocket.”
“Lnc has been heavily oversold due to time taken to wrap up the 1.5 billion sale of its Teressa Tenements and also a lack of info to the market has not helped. Announcement should produce a re rating and renewed interest.”

Other articles in this week’s newsletter

Stocks: Stocks that are defying the downturn

Share Tips: 18 Broker Share Tips – 9 March

Stock picking tournament: Your favourite 5 stocks this week

Stocks: Gold bull run benefits Beaconsfield Gold

Trading: Top ten CFD stocks for the week

Breaking News: Click here for a full list of the latest breaking news 


Please note that TheBull.com.au simply publishes reader comments on this page. The publication of these comments does not in any way constitute a recommendation on the part of TheBull.com.au nor on the part of the reader who wrote the comment. You should seek professional advice before making any investment decisions.