PetroChina (PTR) has become the world’s 2nd largest company behind only Exxon-Mobile (XOM) in terms of market capitalization. Since its IPO in 2000, the stock has soared. Its been up 100% nearly every single year!
According to Bloomberg, this is a reflection of its key role in supplying oil to the world’s fastest-growing major economy. Warren Buffett ‘s slow reduction in his huge stake in PTR hasn’t had any negative effect on its share price. It was first announced last month that he’s selling the stock, but since then the stock is up ~50%.
I bought PTR for my Roth early this year at $109. It currently trading at $260 and it pays a $5.40 dividend (which works out to 4.95% dividend on my purchase price). Typically I’d sell anything that rose 138% in less than a year, but its a tough call with PTR. The dividend is good for such a large company, and I think over the long term oil will still go higher.
T. Boone Pickens, who’s been investing in oil since it traded around $3/barrel, thinks it will hit $100 next year. He’s been right in his predictions about oil prices so far.
Plus PTR can go where other companies fear to tread. It doesn’t have any qualms about investing in politically sensitive areas like Dafur or East Timor. Overall, I think the company has pretty good prospects.