Sunday, May 19, 2013

"It is the glory days in Pennsylvania once again. As the Marcellus Shale moves ahead in the northern tier with tremendous Natural Gas production, a little farther south, in the Lehigh Valley, you have Air Products and Chemicals poised to bring Hydrogen Fuel Cell technology to the big stage."

Dow Jones Industrial Average 15,354  (UP , and once again ALL-Time High) week ending 05-17-2013

Not since the glory days of the Pennsylvania Railroad has the State of Pennsylvania had such a dominant position in any one economic sector. This time it is ENERGY. I didn't see it at first. I was not thinking about anything but Natural Gas, that will shortly dominate the energy scene in 2014-2015. 

But, there is another energy source right here in Pennsylvania.  Fuel Cells and Hydrogen fueled crossover automobiles, buses and trucks. The Fuel Cell converts hydrogen to electricity to power electric motors, rather than burning hydrogen in place of gasoline. The country of Iceland has, in large part, already converted to Hydrogen Fuel Cell technology.  Hyundai says it will produce 1,000 ix35 Fuel Cell vehicles by 2015.  

The winner in this is Air Products and Chemicals Inc. (Symbol APD, $94.33)


Oh, you're not feeling Green enough yet?  How about this: Air Products' Solar Farm - Largest Silicon Thin-Film Solar Panel Farm in U.S. . Now, how about some numbers?

Return on Equity 18.67% - PEG Ratio 1.67. The Peg ratio is up a bit because of these recent market runs. Once again, in these rising stock market conditions, you might want to buy on a slight market correction to buy below 1.50 on the Peg Ratio. 


Need a Fill-up on your Space shuttle?

You are looking for Total Return here, so start with a 3.01% dividend to start you off. The one year Total Return on the stock has been 22.08% and the 3 Year Total Return has been 47.85%

You're not going to see any big sales gains in the short term, but these guys are on the right path. Sometimes, there is more to the parts of a company story than is immediately evident in the numbers. 2013 earnings per share are projected to be $5.51 per share. 2014 earnings per share are projected forward to be approximately $6.09 per share. 


So, maybe when you pull up to the fuel service station, you will pick out either Natural Gas, Hydrogen, Diesel or Gasoline. No Nuclear powered vehicles yet, but who knows what will come in the next 10 years?

APD is a good solid cyclical stock for your portfolio that has a very bright future ahead in Energy.

Who knew it would all being going on here in Pennsylvania?? 

Enjoy the rest of your weekend. 

Freewilly                                            







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