Hi Mangrove, saw an article yesterday where the analyst is also...

Hi Mangrove, saw an article yesterday where the analyst is also very keen on the oil/gas sector. Have pasted it below.

Read today that tropical storm Bill is approaching the Gulf of Mexico right now, this is worth considering for an effect on the PSA share price, whether short or long term.

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http://www.fortune.com/fortune/investing/articles/0,15114,460592,00.html

FORTUNE
Tuesday, June 24, 2003
By David Rynecki


Will Rich Bernstein ever turn bullish again? Merrill Lynch's chief U.S. strategist went negative on tech stocks in the late 1990s and has remained among the most pessimistic—and accurate—market forecasters ever since. With most of the Street shouting "Buy!" right now, he's telling investors to put just 45% of their money into stocks and insists that the S&P 500's 25% rally from its bottom this year is nothing more than a nasty head fake. We caught up with Bernstein to find out where he does see value—and why he still doesn't like tech stocks.

Are you the biggest bear on Wall Street?
That doesn't quite characterize me correctly. I'm more cautious than other people right now, which is why I appear to be so incredibly bearish. I think people are overly enthusiastic. But I'm not bearish about everything. You'd be hard-pressed to find bulls as passionate about their buy themes as we are.

What do you make of the rally?
We are reinflating the bubble.

But after three years of lousy returns, aren't we due for a good run?
You would think so. We've had three years of a bear market and the worst profit recession in history. The problem is, that hasn't killed the speculation. It all comes down to basic economics. The market is not allocating capital to where it is needed most. It is allocating capital to technology, a sector with huge amounts of overcapacity that is in serious need of consolidation.

Do you ever think you're too skeptical?
No. Our work is extremely disciplined. I rarely shoot from the hip. The market is racing, and the indicators we have that forecast the fundamentals are not chiming in. The irony is, if I am doing my job well, I'm going to be bullish when the consensus is bearish, and bearish when the consensus is bullish.

Some stocks must look attractive, right?
Yeah. There's tons of value in the market, just not in consumer cyclicals and technology.

Where is all that hidden value?
Energy needs capital more than any other sector. We've had two oil shocks in three years; the price of natural gas is unusually high. The opportunity for a significant return on capital is quite strong. I think this is one of the best growth stories around. It is 180 degrees different from what you are getting in the tech sector. I also love dividend-paying utilities, consumer staples, the big drug companies, and the industrial sector.

You recommend putting 45% of a portfolio into bonds right now. But isn't there a bond bubble?
People use the word "bubble" too loosely these days. Perceptions can be amazingly wrong. During the tech bubble, did everyone agree it was a tech bubble? No. But now we hear people saying there is a bond bubble. My answer is that bond portfolios are at their shortest duration ever to minimize the risks. If there were a bond bubble, managers would be buying 100-year, zero-coupon bonds.

Will there ever be another long-running bull market in stocks?
Of course. I'm not sure when it will start. But it won't be in the same stocks that drove the last one. That never happens.