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EnvestorFirst (< 20)

Forever Hold Energy Stocks



August 23, 2011 – Comments (1) | RELATED TICKERS: CLD , PTR , PSE.DL

Energy is going to be in demand for a long time to come. We do not see this area of the market going anywhere, anytime soon. Why not invest in a market full of stocks that should be in the market for a long time to come? Each of the companies below are blowing away their competitors, and Vatalyst explains why and how they are doing this.


Cloud Peak Energy (CLD) Shares are trading at $17.72 at the time of writing, against their 52-week trading range of $14.77 to $24.69. Earnings per share for the last fiscal year were $2.07, placing the shares on a price to earnings ratio of 8.56. It paid no dividend last year.

The shares stand at a price to earnings ratio below the industry average of 12.47 and well below that of coal mining competitor Arch (ACI) at 18.20. Its operating margin of 16.07% is better than that of Arch (12.59%). With demand from India and China set to continue, the shares represent good value and should out-perform those of Arch in the medium to long term.

PetroChina Co Ltd (PTR): Shares are trading at $118.98 at the time of writing, against their 52-week trading range of $106.72 to $158.83. At the current market price, the company is capitalized at $220.13 billion. Earnings per share for the last fiscal year were $12.20, and it paid a dividend of $5.04 (yielding 4.20%). The company concentrates its production and distribution of oil and gas in China, rapidly becoming the world’s largest economy. Its dependence on a single geographic location would normally be a weakness, but with China growing strongly and PetroChina’s larger market presence than its competitors such as Chevron in the region, this could be a major plus point for the shares in a weakening global economy. The dividend yield is also a major plus, and the company is likely to continue to pay strong dividends in the future."


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1 Comments – Post Your Own

#1) On August 25, 2011 at 1:31 PM, dergon (< 20) wrote:

I am toying with buying some CLD for the long run. However, as I've been researching I am getting more and more concerned about the potential effects of the EPA Cross-State Air Pollution Rule (CSAPR) on the domestic coal industry as a whole.

I suppose there is always export to China, but are you folk out there ocncerned about the potential closure of numerous coal plant in the US causing a hit to the earnings of companies like CLD, ACI and BTU?

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