It’s one of my favorite ways to invest in America’s boom in shale-oil production… and apparently, legendary investor George Soros agrees with me.

The company is Penn Virginia (PVA). Originally named Virginia Coal & Iron, John Leisenring of Mauch Chunk, Pennsylvania founded the company in 1882 based on his coal-mining interests.

In 1967, the company changed its name to Penn Virginia Corp. And over the next 30 years, it acquired oil and gas companies that both produced and piped the products around the U.S.

[ad#Google Adsense 336×280-IA]Starting in 2001, the company began a radical series of changes.

It spun off both its coal and pipeline operations.

Then the thinned-down company went after shale projects in a big way.

I wrote about Penn Virginia’s new focus in the October issue of the S&A Resource Report.

At the time, I was interested in it because the company was acquiring huge tracts of land in the giant Eagle Ford Shale in eastern Texas, vastly increasing its holdings there.

In 2010, the company owned just 6,800 net acres in the Eagle Ford Shale. By 2013, it owned 62,300 net acres. In 2011, the company generated just 40% of its revenue from crude oil production. In 2013, it produced 80% of its revenue from crude oil.

I could tell, both from the company’s expressed plans and the areas that it invested, that its strategy would pay off for investors. So we bought shares for $6.73.

Last week, the fund of legendary investor George Soros announced that it boosted its position in Penn Virginia to more than 9% of the company. The Soros Fund Management hedge fund already had a substantial 5.8 million-share stake in the company. But since the start of 2014, it bought 670,000 more shares, for a total of $8.7 million. The net result of Soros’ transactions was to increase his Penn Virginia position from 8.2% of the company to 9.2%.

What’s interesting is that his fund paid around $13 per share for its recent acquisitions… almost twice what S&A Resource Report subscribers paid back in October. As you would expect, the market went wild, sending shares of the stock up more than 15%. It hit a new 52-week high on Tuesday at $15.73 per share and continued higher.

Investment analysts at SunTrust Bank raised their target price from $21 per share to $25 per share on the news. Readers of my S&A Resource Report are up 146% and are likely to make much more on this investment… Because if Soros was buying at $13 per share, Penn Virginia has more room to grow.

— Matt Badiali


Source: The Growth Stock Wire