Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal and natural resource company Penn Virginia Resource Partners
With that in mind, let's take a closer look at Penn Virginia's business and see what CAPS investors are saying about the stock right now.
Penn Virginia facts
|Headquarters (Founded)||Radnor, Penn. (2001)|
|Market Cap||$1.39 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$855.44 million|
|Return on Equity (Average, Past 3 Years)||17.1%|
|Cash/Debt||$10.65 million / $716.68 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 332 members who have rated Penn Virginia believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars TMFDeej and BillinOmaha, both of whom are ranked in the top 10% of our community.
Just two days ago, TMFDeej tapped Penn Virginia as a particularly timely pick: "Taking advantage of the recent sell-off to add this high yield stock. Also, the recent anti-nuke sentiment may make some people think that coal isn't actually that bad."
Currently, Penn Virginia even sports a cheapish price-to-cash flow of 7.2. That represents a discount to much larger coal stocks like CONSOL (10.6), Massey (22.1), and Peabody (16.8).
CAPS All-Star BillinOmaha elaborates on the Penn Virginia bull case:
Besides the coal and natural gas properties that [Penn Virginia] manages, it also manages significant amounts of timber located adjacent to and on the other properties. The management of these resources, which are complementary with each other, works quite well and the company has an excellent track record going back to about 1888.
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