Noble Energy, Inc. (NBL), TOTAL S.A. (ADR) (TOT): Riches in Israel and Cyprus & Why You Must Invest

Moreover, Total also has a lot of money in hand, with an operating cash flow of $27 billion. Its profit margin is approximately 4.8% and its operating margin is about 12.2%, which are not stellar results but are impressive enough for a company its size. With a price-to-sales ratio of just 0.5, it proves to be a great investment option. TOTAL S.A. (ADR) (NYSE:TOT) is Africa’s top oil and gas vendor. Africa has an ever-increasing need for energy and fuel, which makes Total’s business stronger in the coming years even if Europe’s economy slows down. If the Chinese Premier’s reassurances are considered, Total will have an even larger market in China for its oil and gas resources.

What does all this mean for investors?

With previous findings in the larger Leviathan field, companies operating in Israel sit on an estimated 38 trillion cubic feet of natural gas, all in Levant Basin. Add to that Noble’s potential reserves south of Cyprus, which is just around the corner from Levant Basin. The rig that will drill in Cyprus will relocate to Israel and back and forth with minimum expenditure to Noble, all in safe waters, under a great international business atmosphere.

I can see Israel getting really rich thanks to its new-found status as a oil and gas major, while Cyprus will manage to get out of the financial mess it is in right now. Israel will also provide greater assistance and collaborate with Cypriot Navy, which will indirectly help Noble to carry on with its drilling activities without security threats.

Noble Energy, Inc. (NYSE:NBL) will spearhead the oil and gas projects of both the countries and consequently will be rewarded with several benefits that will eventually help investors make money. Noble’s quarterly revenue was up 5.1% whereas it posted revenue of $1.1 billion for the quarter. Analysts at Raymond James upgraded the stock from “market perform” to “market outperform”. All of these factors make it clear that Noble is one of the most conservative, safe and lucrative stocks to invest in.

Jaiyant Cavale has no position in any stocks mentioned. The Motley Fool recommends TOTAL S.A. (ADR) (NYSE:TOT). Jaiyant is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Riches in Israel and Cyprus: Why You Must Invest originally appeared on Fool.com and is written by Jaiyant Cavale.

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