Newfield Exploration Co. (NFX)

[Timothy Smith]

$NFX reasons to buy in my opinion:

>It just successfully disposed of $565mm of non-strategic assets in the Gulf of Mexico to W&T Offshore (WTI).

>Natural gas prices are up some 50% off their lows earlier the year and this should start to show up in the company's bottom line.

>It continues to execute well against a plan to move production from 30% oils & liquids in FY2010 to 48% by the end of FY2012.

>The stock is selling at the bottom of its five year valuation range based on P/B, P/E, P/S and P/CF.

>The twenty analysts that cover the stock have a median price target of $42.25, some 40% above the current stock price.

>Analysts also expect between 7% and 12% revenue growth for FY2012 and FY2013 and the stock has a five year projected PEG of under 1 (.80).

>The stock is cheap at just 96% of book value and three times operating cash flow.