Friday, May 22, 2009

Stock Of The Week For Defensive Investor (May 22, 2009)

After screening for a good (although it's hard to find it in this tough time), finally we could find the better company which match to our defensive investor's stock criteria according to Benjamin Graham's tenet. Here is the company's description:

Company Name: Suburban Propane Partners LP (Stock Ticker: SPH)

Stock Price: US$40.72 (May 21, 2009)

Market Capitalization: US$1.34 billion

Price/Earnings: 7.90

Price/Book Ratio: 3.66

Total Cash: US$235.46 million

Profit Margin: 12.44%

Dividend: 3.23

Suburban Propane Partners LP is the company which distributes propane, fuel oil, kerosene, diesel fuel, gasoline, and refined fuels, as well as marketing of natural gas and electricity. The company's P/E ratio are 7.90, and quite cheap if compared with its industry's P/E (18.04) and the cheapest among its direct competitors (Amerigas Partners LP, Ferrellgas Partners LP and Energy Transfer Partners LP). The P/BV ratio is also quite small if compared with other companies. And the last but not least, although the company has the least revenue among its competitor, but Suburban earns the highest net income (170.48 million).

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