Natuaral gas will make a big comeback

5.3%

THE BIGGER FISH, OneOk, buys, transports, stores and distributes natural gas. It yields 6.4%, which isn't too shabby, and its shares recently fell to a 52-week low near 26. Despite the gloom in the financial markets, analysts' 2009 earnings estimates are $3.49 a share, giving the stock a price/earnings ratio of just below eight times expected profits.

PE of 12, a PEG of 1.19, and it pays a yield of 4.7%.

value

Jim Cramer's take: www.thestreet.com/cramerstake/OKE.html

Q: What other sectors look attractive?

A: Pipelines. The pipeline companies don't directly benefit from higher commodity prices, as would integrated oil or E&P companies, but there is a great need to expand our pipeline infrastructure in this country, and a lot of the companies we favor are positioned to do just that. Oneok [OKE] and El Paso [EP] are two we like. El Paso has a very large natural-gas pipeline network, and it looks undervalued to us. As for Oneok, they are well-positioned to benefit from a lot of natural gas in the Rockies and some of these mid-continent shale plays.

energy/dividend

oversold

Energy