2 great shares to watch this week

Investors should have a closer look at the potential of Cooper Energy Ltd. (ASX:COE) and Aurizon Holdings Ltd (ASX:AZJ) after results were released to the market recently.

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For many investors, tax time is the perfect time of year to re-examine their portfolio.

Most try to complete their trades before June 30 to reap any advantages immediately, but I prefer to do it after that date, for two reasons.

Firstly because when I'm preparing last year's return it's easier to think about what I want to achieve tax-wise for next year; and secondly because holding off on trading lets you read a number of annual reports to help you decide which investments to keep.

The two companies in today's article are good examples of why waiting for an annual report to come out before making an investment decision can be a sound idea:

Cooper Energy Ltd. (ASX: COE)

This junior oil producer in South Australia's Cooper Basin today delivered its best full-year results yet, with revenue up 35%, net profit rising by 5%, and underlying net profit doubling.

The company's cash and investments balance also improved, rising 10% to $75 million.

Production rose 20% to 0.59Mmbbl (up from 0.49Mmbbl previously) and reserves declined slightly from 2.16Mmbbl to 2.01Mmbbl, roughly four years' production at current rates.

Contingent resources however (oil not associated with currently producing wells) soared from 5.7Mmboe to 35.1Mmboe.

Although 2015 production is expected to decline slightly on this year, Cooper's cash and contingent oil reserves earmark it for a big future and this is one company definitely worth keeping an eye on,

Furthermore, Cooper's share price has risen only 17% in the past year, earmarking it as a potential value purchase for the right investor.

Aurizon Holdings Ltd (ASX: AZJ)

The news is not so good at Queensland rail hauler Aurizon however, which has seen its shareholders jump ship today over disappointment with the latest full-year earnings figures.

Including expenses associated with voluntary redundancies and asset impairments, Aurizon saw statutory EBIT drop by 32%, although revenue remained relatively flat (up 2%).

However investors who read a little further down the annual report most likely discovered that underlying EBIT rose 13% and underlying profit before tax rose 7%.

Coal and iron ore volumes rose by 9% and 21% respectively, and total dividends rose 4.2 cents per share from last year.

Further price falls would provide a good opportunity for investors to pick up Aurizon at a discount, given that future years are expected to deliver significant savings and efficiency improvements.

Even with today's falls factored in, Aurizon continues to look fully valued at the moment. Finding value is a never-ending search on the ASX, with opinions on whether a company is a  'Buy' or not often changing from week to week, let alone from year to year.

That's where The Motley Fool comes in, with our dedicated team of analysts and contributors working to identify companies that are good value to buy right now and likely to grow earnings and outperform the market over time.

Our team of analysts have recently released a free report covering two potential out-performers we think worthy of the 'Oracle of Omaha' himself – Warren Buffett.

If you're interested, simply click on the link below and enter your email address – it takes less than 30 seconds – and we'll send it to you, completely FREE!

Motley Fool contributor Sean O'Neill doesn't own shares in any company mentioned.

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