Topic: Growth Stocks

APACHE CORP. $85 – New York symbol APA

APACHE CORP. $85 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 390.8 million; Market cap: $33.2 billion; Price-to-sales ratio: 1.8; Dividend yield: 0.8%; TSINetwork Rating: Average; www.apachecorp.com) has announced a major new shale gas discovery in the Horn River region of northeastern British Columbia. This single field could contain 48 trillion cubic feet of natural gas. To put that in context, discoveries in the entire region so far total 78 trillion cubic feet.

Even with today’s low gas prices, this discovery has huge potential. It also makes it more likely that the company will build a facility in Kitimat, B.C., to convert gas to a liquid form. Ships would then deliver the gas to markets in Asia. Apache and its partners will likely make a final decision on this project by the end of 2012.

Apache is a buy.

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