I sold 8 Petrochina shares yesterday: they’re 40% up since I bought them in May September 25, 2007Posted by deminvest in China stock, growth stock, investment, my free stock, oil stock, Petrochina, PTR, risky investments, Single stocks, stock I own, stocks that pay high dividends.
Yesterday I sold 8 at shares of a great company: Petrochina (PTR). I sold them at $182.38 each. I made a total amount of $ 1459
I had bought 10 of them at 128.58 in May, spending a sum of $1285.8.
So I got all my money back. I had a nice earning of $173 and I still have 2 Petrochina shares that I got for free. They are now worth $ 364 and that I will try to keep forever. This is yet another example of the free stock strategy.
I had to sell Petrochina because of my strategy, but I do think it is still a great oil company to own. The 6 reasons that made me buy it are still there, although, due to the fact that Petrochina is 40% more expensive than it was in May and to the fact that oil price were a bit lower in the second quarter than they are no in the third, numbers a bit less attractive.
- Forward Annual Dividend Yield: 3.20% ( used to be 4.60% with May’s lower stock price)
- Quarterly Revenue Growth (yoy): 20.30% ( used to be 25.30% with higher oil prices)
- Quarterly Earnings Growth (yoy): 1.40% (used to be 29.40% in May, but will recover on this quarter, because oil price is very high now)
- Forward P/E: 15.57 ( used to be 11.55)
- More cash than debt. A lovely situation the PTR already had in May
- Hooked to China’s growth. Very in important now and in May
When you buy an oil company nowadays, you mainly buy its oil reserves. According to Yahoo finance, http://finance.yahoo.com/q/pr?s=PTR, as of December 31, 2006, Petrochina had estimated proved reserves of approximately 11,618 million barrels of crude oil and approximately 53,469.2 billion cubic feet of natural gas. Since 6000 cubic feet of gas are equivalent to a barrel of oil,
PTR has about 20b barrels of oil and is priced about $300b.
Each barrel of oil equivalent in Petrochina’s reserve has a price tag of $15. Very low compared to some oil companies that are priced up to $30 per boe (barrel of oil equivalent).