[A driller like Anadarko, Unocal has fallen out of favor recently as a result of a string of dry holes, primarily in the Gulf of Mexico. The company did announce a major gulf find in July, but the news failed to boost its stock. At $37 a share, Unocal boasts a 2.2 percent dividend yield and a P/E ratio of 11, well below its five-year average multiple of 35. Putnam New Value's David King sees little downside from here. Either the company gets its act together or it becomes a candidate for a takeover.] Shareholders benefit either way, ... I view it as a low-risk situation.

David King