Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas provider Delta Petroleum (Nasdaq: DPTR ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Delta's business and see what CAPS investors are saying about the stock right now.
Delta facts
| Headquarters (Founded) |
Denver (1984) |
| Market Cap |
$206.2 million |
| Industry |
Oil and gas exploration and production |
| Trailing-12-Month Revenue |
$153.37 million |
| Management |
CEO Carl Lakey (since 2010)
CFO Kevin Nanke (since 1999) |
| Return on Equity (Average, Past 3 Years) |
(33.7%) |
| Cash/Debt |
$15.14 million / $547.22 million |
| Competitors |
Cabot Oil & Gas (NYSE: COG )
Chesapeake Energy (NYSE: CHK )
Denbury Resources (NYSE: DNR ) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 506 members who have rated Delta believe the stock will outperform the S&P 500 going forward. These bulls include mitleg and All-Star TheSheet, who is ranked in the top 0.5% of our community.
Earlier this month, mitleg tapped Delta as an attractive bargain opportunity:
There doesn't seem to be much downside at this point. It is trading well below book. It has valuable assets. It has a robust insider ownership presence. [Oil and gas] companies are usually able to sell assets in whole or in part to pay debt.
In fact, Delta currently sports a paltry price-to-book ratio of just 0.4. That's a clear discount to rivals Cabot (2.3), Chesapeake (1.6), and Denbury (2.1), as well as other big natural gas plays like Anadarko (NYSE: APC ) (1.9) and Apache (NYSE: APA ) (2.1).
CAPS All-Star TheSheet elaborates on the bull case:
I found value here @ $1.50 and still feel this company is a value play here at .80 cents. Delta has some of the best long lived gas fields on the entire continent of North America. Unless natural gas is going to be free, then this company will recover. All the bad is already priced into this stock. It's a medium risk - high reward play at this price.
What do you think about Delta, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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