"On an ongoing basis, we try to talk with the managers of the funds in our Best Buys portfolio; we recently spoke with Charlie Ober of T. Rowe Price New Era (PRNEX)," says Mark Salzinger in The No-Load Fund Investor. Here are highlights from his discussion with the resources manager.

"Ober has positions New Era not only to benefit from likely strong profits in the broad natural resources sector, but also to protect against rising costs within the sector itself. The fund continues to have a large position in energy stocks, which is now 70% of the portfolio.

"Ober has been gradually adjusting the mix of the fund toward oil and gas services and drilling companies, along with engineering and construction firms.

"These types of companies have pricing power, and they can serve the U.S. energy producers along with non-U.S. independent products and the many state-owned or affiliated oil producers overseas. As of the end of July, these types of companies represented six out of the top ten holdings.

"Enbridge Inc. (NYSE: ENB), already Canada's largest shippers of crude oil, is positioning itself to be the dominant distributor of Alberta's oil sands output," notes Tom Slee in Gordon's Pape's The Income Investor.

"The company is in excellent shape. Operating profit in the second quarter rose to $129.5 million, equal to 36 cents a share, up from $118.7 million the year before.

"All of the company's numerous, well-funded projects are on track and should start contributing to profits in 2009. There were no surprises or fireworks in the financial statements, just solid growth, exactly what we need in these volatile markets.

"It has a short- and a long-term program that involves $8 billion worth of projects at an advanced stage and a further $10 billion worth of undertakings on the drawing boards.

"Oil is moving back up, and energy stocks look strong as we head into the final months of 2007," says Mark Skousen, who sees opportunities in the energy sector for both growth investors and income investors.

In his The Turnaround Trader, he looks at Patterson-UTI Energy Inc. (NASDAQ: PTEN), an independent oil and natural gas operator that provides pumping services and remedial work on existing wells in North America. He says, "Patterson-UTI Energy has been in a two-year bear market.

"Two years ago, the stock topped out at $38 a share. This year, it reached a high of $28. In the most recent quarter, its revenues and earnings fell unexpectedly by 18%. But Patterson-UTI Energy is sporting a 25% profit margin and now is selling at only six times current earnings.

"The stock is deeply undervalued and easily could move back up to $28 a share or higher. Zacks Investment Research predicts the stock will reach $29 this year, 'well within historical trading range.' Let's buy Patterson-UTI Energy and set a protective stop of $18 a share. For those willing to take a gamble, consider buying the January $30 calls."