Thursday, August 2, 2007

Hiland Holdings GP LP

Hiland Holdings GP LP is a NASDAQ listed security that has been trading in a range between $18.75 and $42.22 over the past year. With 21,600,000 shares outstanding, a recent price of $35.11 gives a total market capitalization of $741,311,993. While there are certainly larger companies, Hiland Holdings GP LP has definitely earned its place in the pack. Last year, Hiland Holdings GP LP created $0.11 in earnings for every share outstanding.

Hiland Holdings GP LP is currently priced by the market at 325.80 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Hiland Holdings GP LP could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.