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Senex Energy Ltd jumps 7%: Should you buy?

Shares in oil and gas producer Senex Energy Ltd (ASX: SXY) have bounced over 7% higher in afternoon trade as investors reacted to the 17% sell-off in shares since it released full-year results just two weeks ago.

Opening at $0.56 on Tuesday morning, shares have traded down from $0.75 a year earlier. Clearly, the $720 million company’s recent FY14 results presentation – which showed a 38% fall in net profit – was enough to spark a selling spree.

Today’s share price jump comes on the back of no company-specific news but against a backdrop which includes a falling oil price. Brent crude fell to 15-month lows on Monday following signs of easing tensions in the Ukraine and the Middle East as well as ongoing signs of a slowing Chinese economy.

However at these prices Senex appears to hold exceptional value and growth potential for long-term investors. With healthy cash flows, quality management, significantly increased reserve levels and a cheap share price, the only thing it doesn’t offer is a dividend!

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Whilst Senex appears to have it all (except a dividend) our top analyst, Scott Phillips, recently identified one cheap but growing ASX stock with a 6.3% grossed-up dividend yield which I think is also a STANDOUT buy today. If you're interested in knowing its name, just click on the link below, enter your email address and we'll send you the FREE report on his top dividend stock idea for 2014 - 2015!

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Motley Fool Contributor Owen Raszkiewicz owns shares of Senex Energy Ltd. 

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