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Arnold Schnieder Top 5 Picks: ACI, CNX, CLD, CHK, PNC

April 19, 2011 | About:
Charles Cliff

Charles Cliff

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Arnold Schneider is the founder and CFO of Schneider Capital Management. He received a BS in Finance from the McIntire School of Commerce at the University of Virginia and is a past president of the Financial Analysts of Philadelphia. In 1983, Schneider joined Wellington Management as an analyst. He assumed portfolio management responsibilities in 1987, and eventually headed the value team for institutional accounts and several mutual fund portfolios, eventually becoming a senior vice president and partner.

In 1996, after a 13-year career as an analyst and portfolio manager with a large investment advisory firm, Arnold Schneider founded Schneider Capital Management, an employee-owned institutional investment manager located in Wayne, Pa. Schneider Management offers four value-style strategies that adhere to the same investment process and are implemented by a single team sharing a common research platform. The products are distinguished primarily by the market cap range and number of securities held. Their product lines have expanded over time to encompass small, mid- and large-cap value equity strategies. The fund invests primarily in common stocks of companies that have a market capitalization of $1 billion or greater and which Schneider Capital Management Company, the Adviser, believes are undervalued. Arnold Schneider's Value Fund has gained more than 9% year to date, and has averaged 28% per year over the past 5 years. Schneider owns 173 stocks with a total value of $4.1 billion.

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Top Five Holdings in 2010 Ticker Percent Composition Number of Shares
Arch Coal Inc. ACI 8.18% 4,270,326
Consul Energy Group CNX 4.18% 1,568,370
Cloud Peak Energy CLD 3.48% 2,739,481
Chesapeake Energy CHK 3.38% 2,391,038
PNC Financial Services Group PNC 2.83% 854,489


Arch Coal Inc. (ACI)

Arch Coal Inc. is a coal producer in the United States. The company sells coal to power plants, steel mills and industrial facilities. The company operates in three segments: the Powder River Basin, the Western Bituminous region and the Central Appalachia region. During the year ended Dec. 31, 2009, the company sold approximately 126.1 million tons of coal, including approximately 7.5 million tons of coal it purchased from third parties. As of Dec. 31, 2009, it operated 19 active mines at 11 mining complexes located in the United States.

Their shares trade around $33.34, with a P/E ratio of 34.26 and an EPS of $0.97. In the last quarter of 2010, Arch Coal had revenue of $835 million and a net income of $52 million. Over the past ten years, Arch Coal has seen an annual revenue growth of 3.6% per share. GuruFocus rated Arch Coal with the business predictability rank of 1-star.

CONSOL Energy Group (CNX)

CONSOL Energy Inc. is a multi-fuel energy producer and energy services provider primarily serving the electric power generation industry in the United States. CONSOL Energy operates in two segments: coal and gas. The company produces pipeline coal-bed methane gas from its coal properties in the Northern and the Central Appalachian basin, and oil and gas from properties in the Appalachian and Illinois Basins. In addition, it provides energy services, including river and dock services, terminal services, industrial supply services, coal waste disposal services and land resource management services.

Their shares trade around $50.28, with a P/E ratio of 30.94 and an EPS of $1.66. In the last quarter of 2010, CONSOL had revenue of $138 million and a net income of $1.4 billion. Over the past ten years, CONSOL has seen an annual revenue growth of 12.6% per share. GuruFocus rated CONSOL with the business predictability rank of 2-stars.

Cloud Peak Energy (CLD)

Cloud Peak Energy (CLD) is one of the safest producers of low sulfur, high quality, subbituminous coal in the United States. Headquartered in Gillette, Wyoming, Cloud Peak Energy owns three Powder River Basin coal mines. Antelope and Cordero Rojo Mines are located in northeast Wyoming and the Spring Creek Mine is located in southeast Montana near Decker. With over 1,500 employees, the company works to create the most sustainable value from its resources and relationships and is widely recognized for exemplary performance in its safety and environmental programs.

Their shares trade around $20.74, with a P/E ratio of 21.16 and an EPS of $0.98. GuruFocus rated Cloud Peak Energy with the business predictability rank of 1-star.

Chesapeake Energy Corp. (CHK)

Chesapeake Energy Corporation is a producer of natural gas in the United States. It owns interests in approximately 44,100 producing natural gas and oil wells that are producing approximately 2.4 billion cubic feet equivalent, per day, 93% of which is natural gas. The Company is focused on discovering, acquiring and developing conventional and unconventional natural gas reserves onshore in the United States.

Their shares trade around $32.21, with a P/E ratio of 13.79 and an EPS of $2.34. In the last quarter of 2010, the Chesapeake Energy Corporation had revenue of $1.9 billion and a net income of $223 million. Over the past ten years, Cloud Peak Energy has seen an annual revenue growth of 17.2% per share. Chesapeake Energy has performed 7.5% better than the Dow –Jones Average over the past five years, and has seen steady revenue growth over the past 10 years, despite current economic turbulence. Chesapeake has been regularly undervalued, given its performance, for the past several years. GuruFocus rated Cloud Peak Energy with the business predictability rank of 1-star.

PNC Financial Services Group Inc. (PNC)

The PNC Financial Services Group Inc. is a diversified financial services company in the United States. PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing many of its products and services nationally and others in its primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C. and Wisconsin. The Company also provides certain products and services internationally. Retail Banking provides deposit, lending, brokerage, trust, investment management and cash management services. Corporate and Institutional Banking provides lending, treasury management, and capital markets-related products and services. Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management.

Their shares trade around $62.19, with a P/E ratio of 12.42 and an EPS of $5.01. In the last quarter of 2010, PNC had a net income of $1.1 billion. Over the past ten years, PNC has seen an annual revenue growth of 6% per share. GuruFocus rated PNC with the business predictability rank of 1-star.

To check the complete list of Top Growth Companies of Arnold Schneider, please go to http://www.gurufocus.com/holdings.php?GuruName=Arnold+Schneider&tab=growth

Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Arnold Schneider.

Rating: 2.7/5 (13 votes)

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