It is wise to buy the stocks of exploration and production companies again this winter, following the profit-taking downdraft many of them experienced in late October and early November, says FAC/Equities' E&P analyst Bob Christensen. He advises investors to beef up their portfolios now to take advantage of a predicted 50% upside possible between now and the middle of the first quarter of 2001. "We contend that it is safe to begin buying group stocks for their upside potential," Christensen said in a recent report. "Profit-taking is by and large over within the E&P group." He favors a mix of what he terms high-flying (high-growth) stocks and value stocks in the E&P sector. The analyst thought profit-taking would occur late in the fall as natural gas prices fell somewhat from their peak above $5 per thousand cubic feet to $4.50 or so. Sure enough, sellers harvested their bounty and various indices indicated E&P stocks did fall from their recently achieved 52-week highs. Through the end of September, the E&P group stocks had appreciated 80% and were the 13th best-performing group out of 90 industry sectors in the S&P 500. But Christensen thinks there are plenty of good reasons to stock up on stocks now. Low storage levels of natural gas should breed investor tolerance, if not outright approval, of gas-oriented stories. Raiding E&P stocks to load up on technology stocks is a nonstarter this year compared with 1999, he says. Finally, tax-loss selling of energy stocks is a moot point this year as well. "It seems unlikely to us that E&P stocks will be sold to purchase tech stocks later this year, " he says. His high-flying, growth stock recommendations, all rated strong buys, are Anadarko Petroleum, Apache, Devon Energy, EOG Resources and Newfield Exploration. His value-oriented picks, also all strong buys, are Burlington Resources, Barrett Resources, Pioneer Natural Resources, Questar Corp., Western Gas Resources and Unit Corp.