Investing is a tricky thing, especially with the current volatile nature of the stock market due to the poor economy. Making a wise investment requires education and research on the part of the investor. It is helpful to get some tips from experts regarding good investments because this can eliminate some of the homework involved. When investing in energy stocks, there are several that rise to the top for 2010.
Some analysts recommend that investors put their money in companies with crude oil exposure rather than those that focus on natural gas. Investors should examine the portion of the total proved reserves of a company that originates from natural gas reserves in North America. This number indicates how much exposure the company has to gas.
Integrated oil and gas producers like Chevron and Exxon Mobil are also good choices but investors should avoid companies that have a strong marketing or refining focus because these areas are suffering. Companies like Hess have little exposure to refining and Royal Dutch Shell and Valero Energy reduced their focus on the area by each shutting down a plant.
Do not overlook alternative energy stocks if there is an interest in the energy sector. Bicycle and scooter stocks are reaping the benefits of increased fuel prices. Dorel Industries, Inc. owns several bicycle manufacturing companies. Giant Manufacturing, based in Taiwan, is the largest bicycle manufacturer in the world. Piaggio & C.S.p.A manufacturers the Vespa and Piaggio brands of motor scooters and Advanced Battery Technologies, specializing in the e-bike and electric scooter arena, has a strong stock.
Whether the desire is to invest in traditional energy stocks dealing in oil or those that specialize in alternative energy like bikes or scooters, there are well-performing stocks to be found. Experts recommend that the investor should focus on oil rather than natural gas stocks in the immediate future. With the environmental movement taking a strong hold, companies that manufacture bicycles, motorized scooters, or e-bikes are also worth investigating.