Occidental"We are initiating coverage of Occidental Petroleum...



"We are initiating coverage of Occidental Petroleum (OXY, NYSE, around $25) with a buy rating," says Barry Sahgal of Ladenburg, Thalmann & Co.

"Since the death of Dr. Armand Hammer in late 1990, we believe a new Occidental is rising from the ashes. It has embarked upon a two-year restructuring program to reduce long-term debt and refocus on its core oil, natural gas, and chemicals business. Despite the recent share-price appreciation, we believe long-term investors will be well rewarded."

Royal Dutch

"Royal Dutch Petroleum (RD, NYSE, around $80) owns 60 percent of the Shell Group, a private company," says Adrian Day's Investment Analyst of Baltimore.

"Royal Dutch is priced at a significant discount to the industry average in terms of P/E, book value, yield and other valuation figures. It sells at only 10 times earnings and less than five times cash flow. This is the kind of stock we are satisfied to buy at more-or-less any price. Royal Dutch can be bought with little regard for the state of the economy or the stock market."

Triton Energy

"The discovery of an oil field has only a modest effect on a company such as Exxon or Texaco. However, a new discovery can make a big difference to a small company. Such is the case with Triton Energy (OIL, NYSE, around $45)," says The Cabot Market Letter, Salem, Mass.

"In mid-July, the company . . . announced a gigantic new oil find in Colombia. While this stock is clearly speculative, we believe it will be an exciting situation. The stock already has tremendous upward momentum, and we don't expect this to falter . . . "

Maxus Energy

"Maxus Energy (MXS, NYSE, around $10) reached a high of over $13 a share during the Persian Gulf crisis but has since trended lower as interest in energy issues has waned," says The Speculator of Sarasota, Fla.

"We are impressed by the company's portfolio of oil-producinproperties and continue to recommend purchase of the shares. The company is selling at a meager 3.7 times cash flows with further gains in cash flows expected. We continue to recommend holding Maxus, and adding to positions on any periodic sell-offs."

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