Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese petroleum company Longwei Petroleum Investment Holding Limited (AMEX: LPH ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Longwei's business and see what CAPS investors are saying about the stock right now.
Longwei facts
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Headquarters (Founded)
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Taiyuan City, China (1995)
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Market Cap
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$200.36 million
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Industry
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Oil and gas refining and marketing
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Trailing-12-Month Revenue
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$446.18 million
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Management
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Chairman/CEO Cai Yongjun
CFO Michael Toups
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Return on Equity (Average, Past 3 Years)
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24.5%
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Cash/Debt
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$15.1 million / $0
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Competitors
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China Petroleum & Chemical (NYSE: SNP )
PetroChina (NYSE: PTR )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 341 members who have rated Longwei believe the stock will outperform the S&P 500 going forward. These bulls include staranalystkc and bokononblue22.
Just last month, staranalystkc listed several of Longwei's positives: "Very [robust] competitive advantages, stable, highly predictable, safe, and healthy profit margins, high short-term and long-term organic and external growth potential, and dirt [cheap], unduly discounted valuation level."
In fact, Longwei currently sports a paltry P/E of 3.7. That represents a clear discount to listed rivals Sinopec (8.4) and PetroChina (13.5), as well as other foreign energy plays like Petrobras (NYSE: PBR ) (9.2)
CAPS member bokononblue22 elaborates on the bull case:
Very simple -- they're an energy distributor in China, supporting mainly commercial operations in a mountainous mining region. Energy prices will go up, demand for that energy will go home. Ergo, the business will go up. And those mountains, moats don't get much more imposing than that. They'll bar oil producers from building a pipeline to the region.
What do you think about Longwei, 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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