E Daily Stock Pick: Sinopec

This week, I'm looking for the fourth consumer energy representative of four for my Ivy portfolio.

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration and production (E&P), equipment and services, integrated, midstream, refining & marketing.  (Those six oily and gassy enterprises.)

Today I'm reviewing a large-cap oil and gas integrated firm, named China Petroleum & Chemical Corporation ticker symbol is SNP.

China Petroleum & Chemical, or Sinopec, is one of China's national oil companies and one of Asian's largest integrated oil companies in terms of revenue.

Its income is derived primarily from refining and marketing of oil products and petrochemical production. Sinopec has China's largest petrol station network with over 30,000 stations and enjoys significant market share in petrochemicals.

Established in 2000 by Sinopec Group, a state-owned enterprise and majority shareholder, the company also owns oil and gas assets in Shandong and Sichuan provinces. It has a smaller global upstream presence than peers PetroChina and CNOOC.

Headquartered in Beijing, the People's Republic of China, China Petroleum & Chemical Corporation is a subsidiary of China Petrochemical Corporation.

I use three key data points to gauge the value of any dividend equity-like China Petroleum & Chemical Corporation:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

SNP Price

Sinopec's price per share closed at $80.23 yesterday. A year ago its price was $91.61. Price fell $11.38 or 12.4% in the past year.

Assuming Sinopec's stock trades in the range of $70 to $100 this year, Sinopec's recent $80.23 price could rise by $3.77 and go to $84.00 by early-April, 2020.

1 2
View single page >> |




How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.