E Energy Stock Review: Star Group

This week, I'm seeking a second robust dividend energy sector representative for my new 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. (Yes, six oily and gassy enterprises.)

Today I'm reviewing a small-cap oil & gas midstream company, named Star Group LP Its trading ticker symbol is SGU.

Star Group, L.P. operates as a home heating oil and propane distributor and services provider in the United States.

It also installs, maintains, and repairs heating and air conditioning equipment, as well as offers ancillary home services, including home security and plumbing. 

As of September 30, 2017, the company sold home heating oil and propane to approximately 455,000 full service residential and commercial customers. It also sells home heating oil, gasoline, and diesel fuel to approximately 74,000 customers on a delivery only basis. 

The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was founded in 1995 and is headquartered in Stamford, Connecticut.

I use three key data points to gauge the value of any dividend equity or fund like Star Group LP: 

(1) Price

(2) Dividends

(3) Returns

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

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

SGU Price

Star Group's price per share was $9.71 at yesterday's market close. A year ago its price was $10.45 for a price drop of $0.74 per share for the year or a 7% downside. 

Assuming Star Group's price will trade in the range of $8 to $11 next year, Star Group's recent $9.71 price could maybe climb by $1.29 and improve to $11.00 by mid-December, 2019. 

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Disclaimer:  

This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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