Petroleum Development Corp (PETD)

Stock screener pick

Despite near term market correction, these guys are set to beat the pants off the market over the next several years.

Showed up on a screen for solid 5 year growth with low debt, cash on hand and still at attractive P/E ratios.

P/E ratio is absurdly low

Mmm...oil...

got to go with nat gas. someday the liberals will see this as a cash cow plus a massive job creator as a transportation fuel.

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

Good fundamentals.

The Petroleum Development Corporation (PETD) has had stellar growth over the last 5 years. Sales and profits have increased 231% and 403% respectively. The PE, PS, and PB ratios indicate PETD to be substantially undervalued. PETD is valued at $35.30 for FY2009. With a current price of $13.30, PETD is 171% undervalued for the fiscal year. The Company has an incredibly high earnings yield and profit margin of 66% and 20% respectively. Current profit levels would enable PETD to pay off all long-term debt within 4 years on profit alone. PETD lost $33.1 million in the second quarter 2009 due to losses from hedging contracts. This is less than the $40.7 million lost in year earlier quarter. The Company’s beta of 2.2 indicates the stock to be substantially volatile routinely performing double the market average on both up and down sides. The stock can be expected to remain flat or go lower short term. PETD spends 60% less on finding & research (F&D) than its industry peer group and maintains a $375 million credit line from 13 lenders. Risks include local environmental regulations, Federal regulations, operating hazards with insurance costs, competition, global economic risks, market volatility, concentration of regional operations (Rocky Mountains), decline in production, failure of drilling prospects, high capital expenditures, weather conditions, geopolitical risks, litigation, and debt risks.

For my complete analysis, download my PDF report at...

http://betapeg.com/stock_picks__reports

Speculative, yes--but, too much upside potential at this price to ignore. I've had much success nibbling at these types of plays just after negative market overreactions.

Good growth and earnings.

Considering Book value, earnings, and market cap...this should beat the market in 5 years.

Current down trend for this industry. They will eventually bounce back, but for now on a downhill slide.

Underpriced. Will rise with natural gas prices. Excellent insider ownership, growth, and returns.

My target for Petroleum Develop is 62.79. I used my new method for determining a fair P/E (based on G and K). The growth factor was extracted from the PEG found on the web. K was 10%. I hope it works!

the reasons that drove it to 78 ought to be good enough to get to 35, even on a dead cat bounce - and I don't think this kitty is even sick. It's 80%+heldbyinstitutions stock just got just dumped by them during the credit implosion.

How does a four star company have both negative EPS and negative profit margin. Time to go against the CAPS community and say underperform

Ride the energy wave.

Jump up to $80.