Cheniere Energy, Inc. (LNG), Dominion Resources, Inc. (D), C&J Energy Services Inc (CJES): This Could Destroy Your Wealth or Make You Rich

C&J Energy Services Inc (NYSE:CJES) is involved in the hydraulic fracking process and performs this service for oil and gas companies. Its fleet of equipment is new and state of the art and, most importantly, portable. C&J Energy Services Inc (NYSE:CJES) can move its equipment to any location where there is a customer, inside or outside of the United States. If fracking is being carried out anywhere in the world, there are potential customers for C&J Energy Services Inc (NYSE:CJES).

China is estimated to have recoverable reserves almost 50% greater than the United States and Mexico’s are estimated at only about 21% less. If the U.S. decides we don’t want to allow fracking here, you can bet the rest of the world will not follow and C&J Energy Services Inc (NYSE:CJES) can follow the production with their portable equipment.

With a P/E ratio of 7.95 times projected earnings for 2013, this is a very reasonably priced stock and sports a 5-year projected earnings growth rate of 20%. If analysts’ projections are anywhere close to correct, this stock could easily increase 200% from current levels and still be fairly priced.

Serious final thoughts from a Foolish analyst

While I do write for “The Motley Fool”, there is nothing foolish about my approach to investing. Cheniere Energy, Inc. (NYSEMKT:LNG) has enormous upside potential but also possible catastrophic risk to their business should tax or environmental actions alter the cost of natural gas for export in an unfavorable way.

Dominion Resources, Inc. (NYSE:D) is a great business with an attractive dividend, but is valued quite highly by the market. Good businesses that are highly priced have more opportunity to decline than to advance.

C&J Energy Services Inc (NYSE:CJES) can move their equipment anywhere in the world where it is wanted and rent its services to the highest bidder. It is a great, well-run business, trading at a very attractive valuation for new investors. The current low price of C&J also provides for substantial protection from downside risk.

The article This Could Destroy Your Wealth or Make You Rich originally appeared on Fool.com and is written by Ken McGaha.

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