Texas Pacific Land Corporation (TPL)

[couldbebetter]

In recent years TPL has sold at a PE rangeing from 16 to 63. Right now
it trades around 30X 2018's expected (by me) EPS. Being thinly traded
can result in the stock price being savaged especially when market
meltdowns result in supporting bids being pulled at the same time
market sell orders hit. THAT IS THE MAIN RISK IN OWNING TPL STOCK!
However, such sharp downturns are normally met with sharp run-ups as
the price continues higher. Was the stock overvalued the last time it
sold at at 63? Of course. Except for the fact that the stock is
substantially higher today at a PE of around 30.
As a company this is very safe...zero debt...record earnings...
and more stock being bought back and cancelled every month. For
anyone who asks me if it too expensive to buy I tell them not if they
buy on a dip and keep a mental note to buy more if it were to trade at
20X EPS (roughly $600.) Do I expect this stock to hit $2,000 within 2
years time? Yes! Might it hit $3,000 in 3-5 years time? Yes. Could it
fall to $600 before any of that? Of course.
I really don't see this stock being hyped by anyone. Sure, people
do excited when they see it go up, and many have some significant gains.
Most investors seem to be holding this stock for the long-run. For some
friends I got into the stock I tell them to hold it for a $1,000 gain.
They are happily doing just that!