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T Boone Pickens runs the BP Capital Management Hedge Fund which has $324 million in assets under its management. Mr. Pickens started his career as an oil man and invests primarily in energy companies. Mr. Pickens is estimated to have a net worth of around $2.5 billion. Here is my fundamental analysis of his latest sells:

Devon Energy Corporation (NYSE:DVN) Devon Energy has a market cap of $24.49 billion with a price to earnings ratio of 4.33. The stock has traded in a 52 week range between $55.14 and $93.56. The stock is currently trading around $59. On August 3rd the company reported second quarter revenues of $3.22 billion compared to revenues of $2.23 billion in the second quarter of 2010. Second quarter net income was $2.74 billion compared to net income of $706 million in the second quarter of 2010.

One of Devon Energy’s competitors is EOG Resources (NYSE:EOG). EOG is currently trading around $79 with a market cap of $21.10 billion and a price to earnings ratio of 49.47. EOG pays a dividend which yields 0.5% versus Devon Energy whose dividend yields 1.2%.

BP Capital Management currently holds -0- shares of Devon Energy. BP Capital sold its last 148,413 shares during the second quarter of 2011. Devon Energy increased year over year second quarter net income by 288%. The company increased its 2010 net income by $7.03 billion from 2009. Over the last 52 weeks, the stock price is down by 8.87%.

In spite of the recent drop in Energy company stock prices, Devon’s stock has fared pretty well. With a price to earnings ratio of around 4.3 and a price to book ratio of 1.14, this stock is dirt cheap. I would recommend buying this stock while it is still a bargain. I rate Devon Energy Corporation as a buy.

Oceaneering International Inc. (NYSE:OII) OII has a market cap of $4.12 billion with a price to earnings ratio of 19.97. The stock has traded in a 52 week range between $25.81 and $38.58. The current stock price is around $38. On July 28th the company reported revenues of $546 million, compared to revenues of $464 million in the second quarter of 2010. Second quarter net income was $201 million compared to net income of $188 million in the second quarter of 2010.

One of OII’s competitors is Global Industries Ltd. (NASDAQ:GLBL). GLBL is currently trading around $8 with a market cap of $902.88 million and a negative price to earnings ratio. GLBL does not pay a dividend versus OII whose dividend yields 1.6%.

BP Capital Management currently owns -0- shares of OII. BP Capital sold all 303,016 of its shares of OII during the second quarter of 2011. OII increased year over year second quarter earnings by 17.6% and net income by 4.4%. The company offers engineering support for offshore oil rigs. The company should see earnings increase now that the BP Amoco oil spill has been cleaned up, and the US Government is issuing permits, allowing rigs to drill in the Gulf of Mexico. Over the last 52 weeks, the stock price has increased by 42.97%.

I believe that as more drilling rigs come on line that earnings will continue to increase. This should push the stock price even higher. I do not agree with T. Boone Pickens decision to sell this stock. I rate Oceaneering International Inc. as a buy.

ABB Ltd. (NYSE:ABB) ABB has a market cap of $40.35 billion with a price to earnings ratio of 13.30. The stock has traded in a 52 week range between $16.32 and $27.58. The current stock price is around $18. The company reported second quarter revenues of $9.68 billion compared to revenues of $7.57 billion in the second quarter of 2010. Second quarter net income was $893 million compares to net income of $623 million in the second quarter of 2010. In 2010, the net income was $2.56 billion, which was down by 13.2 % for 2009 net income of $2.9 billion.

One of ABB’s competitors is Siemens AG (SI). SI is currently trading around $94 with a market cap of $81.03 billion and a price to earnings ratio of 13.57. SI pays a dividend which yields 3% versus ABB whose dividend yields 3.9%.

BP Capital currently owns -0- shares of ABB. BP capital sold all 111,600 of its shares of ABB during the second quarter of 2011. ABB has turned a profit in each of the last six years. The company has raised its dividend in each year since 2006 by a total of 580%. ABB’s earnings have decreased in each of the last three years which may explain why the stock has not moved upward.

The stock is down by 17.2% over the last 52 weeks. The company’s earnings and stock price are in a downward trend, and there is no news to make investors think that a turnaround is coming. I rate ABB Ltd. as a hold.

A123 Systems Inc. (AONE) A123 has a market cap of $510.24 million with a negative price to earnings ratio. The stock has traded in a 52 week range between $2.99 and $10.99. The stock is currently trading around $4. The company reported second quarter revenues of $36.4 million compared to revenues of $22.6 million in the second quarter of 2010. Second quarter net income was $-55.4 million compared to net income of $-34.2 million in the second quarter of 2010.

One of A123’s competitors is Valence Technology Inc. (VLNC). VLNC is currently trading around $1 with a market cap of $169.2 million and a negative price to earnings ratio. Neither company pays a dividend.

BP Capital currently owns – 0- shares of A123 Systems. BP Capital sold all 465,300 of its shares of A123 in the second quarter of 2011. A123 is a producer of lithium Ion batteries that can be used in electric vehicles. The company has reported increasingly larger earnings losses in each of the last three years. As the company moves forward its faces stiff competition from other battery makers such as Johnson Controls (NYSE:JCI), Ener1 (NASDAQ:HEV) Valence Technology and others. The intense competition will probably hurt pricing.

The good news is that A123 signed a production contract with General Motors (NYSE:GM) in August. The details have not been released, but this could be a big deal for A123, as GM has announced that it will produce 60,000 “VOLT’s” (its new electric car) in the coming year. A123 is a risky bet but could be a huge winner for those who are willing to take a chance. I rate A123 Systems Inc. as a buy for those who have a high risk tolerance.

Dynegy Inc. (NYSE:DYN) Dynegy has a market cap of $553.41 million with a negative price to earnings ratio. The stock has traded in a 52 week range between $3.54 and $6.92. The stock is currently trading around $4.50. On August 6th the company reported second quarter revenues of $326 million, compared to revenues of $239 million in the second quarter o 2010. Second quarter net income was -116 million compared to net income of -191 million in the second quarter of 2010. Year over year net income improved to -234 million form -$1.25 billion in 2009.

One of Dynegy’s competitors is Chevron Corporation (NYSE:CVX) CVX is currently trading around $93 with a market cap of $186.41 billion and a price to earnings ratio of 8.13. CVX pays a dividend which yields 3.4% versus Dynegy which does not pay a dividend.

BP Capital currently owns -0- shares of Dynegy. BP Capital sold all 1,395,000 of its Dynegy shares in the first quarter of 2011. T Boone Pickens took a big chance when he purchased Dynegy. This company has had long term problems and has lost money in six out of the last ten years. The company is an electric utility company that has seen decreased revenues in each of the last three years.

The company is deeply in debt and is in the process of restructuring. In addition to the previously mentioned problems, the Standard & Poor’s Rating Service recently warned that the company was in danger of having its debt rating deuced to selective default status. I agree with T. Boone Pickens. I rate Dynegy as a sell.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.