Mexico\u2019s President Enrique Pena Nieto presented proposals to the country\u2019s congress to reform the energy industry. His proposals would allow foreign capital into Mexico\u2019s market for the first time since 1938. Mexico\u2019s energy industry has been nationalized since 1938, since the administration of former president Lazaro Cardenas. This is good news for the Oil companies but even better news for the Oil Service Companies.<\/p>\n
Passage is not a foregone conclusion, but word is that Nieto has enough support (a two-thirds majority) from both the Institutional Revolutionary Party and the National Action Party.<\/p>\n
If the plan is passed, it would be a significant development, but it would likely take several years to implement. And while there are questions over permitting and booking of reserves and over Pemex, the country\u2019s largest oil company, we\u2019d expect the stocks to discount the news well beforehand.<\/p>\n
But we believe the leverage would be to the oil companies. Schlumberger (SLB:NYSE) would be one of the biggest beneficiaries of new access and a step up in activity \u2014 that\u2019s one reason we\u2019ve been adding to the position this week. Other services winners would be Halliburton (HAL:NYSE), Weatherford (WFT:NYSE), Baker Hughes (BHI:NYSE) and deep-water plays in Noble Energy (NE:NYSE), Ensco (ESV:NYSE), Diamond Offshore (DO:NYSE) and Transocean (RIG:NYSE).<\/p>\n
The services of oil companies<\/em> have held up relatively well this week in the face of declines for the sector \u2014 likely on this news. But the offshore drillers have been hit after rig status reports that have showed more than expected downtime. Ensco is down 12% from its high and now offers a 3.5% dividend yield, one that is well covered. It now trades at a steeper discount to its peers and appears to us to be overdone. We added to that position on Thursday and will continue to buy on this pullback. A 3.5% yield on Ensco is just too good to pass up. If the stock goes down the yield will increase. This is an excellent company with great management. If it goes down on Monday morning you will see my tweet jumping in.<\/p>\n Nothing wrong with having several streams of income. Internet Marketing is my clear choice and the Empower Network<\/a> is the best I have found. Nothing wrong with investment in education and the Empower Network<\/a> is just that. It gives you the how to make money on the internet. The why is up to you. Take care of my family and live life all out. My goal in life is to do what I want, with who I want, when I want. So give yourself permission to play big in all your endeavors. This doesn\u2019t mean investing lots of money in one stock\u2013it means follow your dreams in life.<\/p>\n I don\u2019t think many people in life regret the things they tried\u2026 They regret the things they did not try. Be empowered and join me in the Road less Travelled.<\/p>\n Credit for the investment part of this article goes to Jim Cramer, Stephanie Link and the Action Alerts research team.<\/p>\n","protected":false},"excerpt":{"rendered":" Mexico\u2019s President Enrique Pena Nieto presented proposals to the country\u2019s congress to reform the energy industry. His proposals would allow foreign capital into Mexico\u2019s market for the first time since 1938. Mexico\u2019s energy industry has been nationalized since 1938, since the administration of former president Lazaro Cardenas. This is good news for the Oil companies […]<\/p>\n","protected":false},"author":1100,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[],"class_list":["post-9","post","type-post","status-publish","format-standard","hentry","category-empower-network","category-stock-market-tips"],"_links":{"self":[{"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/posts\/9","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/users\/1100"}],"replies":[{"embeddable":true,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/comments?post=9"}],"version-history":[{"count":2,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/posts\/9\/revisions"}],"predecessor-version":[{"id":43,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/posts\/9\/revisions\/43"}],"wp:attachment":[{"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/media?parent=9"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/categories?post=9"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/empowernetwork.com\/jonherz40\/wp-json\/wp\/v2\/tags?post=9"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}