For your "Take It to the Bank" Tuesday this week, we're sticking with energy stocks, because one of the biggest opportunities in the oil sector that we've seen in decades is currently underway in the Permian Basin.
Trillions of dollars (yes, really) are up for grabs right now as major oil companies like ExxonMobil Corp (XOM) are pushing to acquire land and other assets in this region of Texas and New Mexico, and there are a lot of opportunities for savvy investors to get involved here if you know what companies are providing the best potential plays.
Fortunately, we do. I already talked about one of them yesterday - Diamondback Energy, Inc. (FANG) - but I've got another pick today that's fallen right into a nice sweet spot, about 26% off of its 52-week highs.
It's the third largest oil producer in the Permian Basin right now, with a market cap north of $52 billion and stellar financials - it consistently puts in trailing 12-month (TMM) revenues of $24-25 billion, with a 32% profit margin to boot.
But maybe best of all, their dividend payouts are frequently in the double digits, and are currently sitting around 12% right now, which they're paying out of a $7.83 billion war chest.
So it's simply a great company, with a great balance sheet, that's not going anywhere anytime soon. And if that weren't enough, it's currently being evaluated as an acquisition target by ExxonMobil, which would mean a nice premium for current investors if they get bought out. But even if not, it's still one of the best buys in the space today.
Check out the video for the ticker...
So as I said above, the Permian Basin is fertile ground for some of the biggest M&A moves in oil and gas we've seen in well over a decade. Money Morning LIVE's executive producer, Garrett Baldwin, is going on the air in a special session Wednesday night at 8 PM ET to give a full presentation and his battle plan - what companies he's looking at, where the opportunities are, and how to take advantage.
Just click here to add it to your calendar.
The post This Stock is 26% Off and Pays a Massive 12% Yield - Buy It Now appeared first on Total Wealth.
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Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
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