Propane is "King of the Hill"
I've added Suburban Propane Partners, L.P. (SPH) to the Barchart Van Meerten New High portfolio. They are a publicly traded Delaware limited partnership engaged, through subsidiaries, in the retail and wholesale marketing of propane and related appliances and services. The Partnership believes it is the third largest retail marketer of propane in the United States. Suburban Propane Partners serves active residential, commercial, industrial and agricultural customers from customer service centers in over 40 states. The Partnership's operations are concentrated in the east and west coast regions of the United States.
This is not the propane company in Arlen, Texas and Hank doesn't work there. For those of you who don't live in the US propane users are a captive market. Propane is used for cooking and heating in homes plus many industrial users that are usually rural and far from the natural gas pipelines as well as in many portable appliances.
The stock is on a move with a 96% overall Barchart buy signal. The stock hit new highs in 19 of the last 20 sessions and has moved up 11.21% in the last month. The stock has a 14 day Relative Strength index of 76.01% and recently traded at 53.72 well above its 50 day moving average of 49.71.
This is basically a utility stock and should recover nicely. Wall Street brokerages have 5 buy reports published based on projections of increased sales and earnings for the next 5 years and a safe dividend coverage.
The general investor has noticed this stock and on Motley Fool the CAPS members voted 252 to 15 that the stock will out perform the market and the All Stars agree 97 to 3.
If you'd like a stock that is enjoying capital appreciation and still pays a 6.8% dividend while you wait this could be the stock for you.
Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.