Stock Pick - Williams Companies Inc.

Williams Companies Inc. (WMB)

Williams Companies Inc through its subsidiaries engages in the production, gathering, processing, and transportation of natural gas.

The ongoing rise in energy prices has significantly boosted the company’s revenue. The company announced its quarterly result on Thursday. The company reported healthy 53% jump in its fourth-quarter profit.

Many of the research firm has upgraded this stock to outperform. Fundamentally as well as technically, the stock is positioned well. At present situation the overall Wall Street is going through significant volatile session, William Companies is showing strong uptrend. From stock trading perspective the stock is giving buy signal with a stoploss around $33.50. The median target for this stock can be around $42 to $45.

For fourth-quarter 2007, recurring income from continuing operations after mark-to-market adjustments was $358 million, or 59 cents per share, compared with $173 million, or 28 cents per share, for the same period in 2006.

Recurring income from continuing operations after mark-to-market adjustments was $1.05 billion, or $1.73 per share, for 2007, compared with $648 million, or $1.07 per share, for 2006.

For 2007, Williams' businesses reported consolidated segment profit of $2.16 billion, compared with $1.49 billion for 2006. In fourth-quarter 2007, the company reported consolidated segment profit of $539 million, compared with $375 million in the fourth quarter of 2006.

The profit was mainly driven by higher natural-gas liquid margins remaining at historically high levels, strong growth in domestic natural gas production volumes, and the positive effect of new rates on two pipeline systems. Moreover the company is expecting this trend to remain through the year.

Current price: $35.57
Target price: $42 to $45
Stoploss: $33.50

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