Forever Hold Energy Stocks
August 23, 2011
– Comments (1) |
RELATED TICKERS: CLD
, PTR
, PSE
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."
Find additional stock picks here:
http://turnkeyoil.com/2011/08/23/forever-hold-energy-stocks/
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