Following Atticus Capital: Occidental Petroleum (OXY) Is a Great Bet On Record Oil Prices

February 22, 2008 1:45 PM EST

Today we want to take a look at Occidental Petroleum (NYSE: OXY), a stock hedge fund Atticus Capital just raised their bet on significantly. According to the firm's latest filing, they raised their stake in the idependent oil and gas company from 2,620,000 shares to 9,428,982 shares.

Occidental Petroleum is now one of Atticus Capital's top 10 holdings, with a value of about $683 million.

Here are some reasons we like Occidental and think it may be wise to follow Atticus Capital's lead.

1. Near record prices for oil. Occidental is highly levered to oil prices.

2. If oil holds up, the company will continue to print money - with EPS at about $7 for the year or more.

3. The company aggressively buys back their stock. OXY recently expandinged their buyback by 20 million shares, to 22.6 million. Since October 2005, the company repurchased approximately 52.4 million shares.

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Here is a link to Atticus Capital's latest holdings

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