In oil and gas, producer Anadarko Petroleum (APC) acquired Kerr-McGee (KMG) and Western Gas. The next big acquisition in Jim’s eyes involves Devon Energy Corp (DVN). DVN is the best run domestic oil play and it is selling below the value of its assets. With 7% growth and selling at 7 times earnings it doesn’t seem to be able to do anything right. The stock is down 14 from its high. A hurricane or tough winter will shoot up natural gas prices and DVN is tied to these prices. There is not enough natural gas in the world so take any decline as an opportunity to make money.