Five North Dakota Stocks

North Dakota’s economy is mainly dependent on agriculture, 25% of its economic base to be more precise. Natural resources are the most valuable asset this state possesses. Consider the following key facts about North Dakota:

1. It ranks number one nationally for its potential to produce wind power.
2. The state also produces biofuels like ethanol and biodiesel.
3. There are more than 160 certified organic farms in the state.
4. North Dakota lowered its corporate income tax beginning January 1, 2007. North Dakota corporate taxable income percentages vary from 2.6 to 6.5%.
5. The state individual income tax varies from 2.1% to 5.5%.
6. North Dakota allows a corporate tax exemption of up to five years for new or expanding technology based businesses.
7. North Dakota is one of the safest states in the country.
8. North Dakota produces about 2.7% of the total U.S. oil production.
9. The state population is only 635,867.
10. North Dakota produced approximately 45 million barrels of oil in 2007.

The following companies are connected to North Dakota:

• MDU Resources Group Inc. (MDU) is a distributor of electricity and natural gas, and is also involved in the construction services segment in Montana, North Dakota, South Dakota, and Wyoming. The stock has a P/E of 12, a PEG of 0.98, and it pays a yield of 1.9%.
• Investors Real Estate Trust (IRET) is an investment trust focused in real estate properties that generate income in the United States. The stock has a P/E of 55, a PEG of 2.53, and it pays a yield of 6.6%.
• Titan Machinery, Inc. (TITN) runs agricultural stores in North America. It is also a retailer of construction equipment. The stock has a P/E of 30, and a PEG of 1.14. The stock has a market cap of $400 million.
• Continental Resources Inc. (CLR), although not based in North Dakota, is an oil and natural gas explorer and developer which is the largest land leaseholder in the North Dakota part of the Bakken shale. The stock has a P/E of 24, and a PEG of 0.41.
• EOG Resources, Inc. (EOG), the oil and gas company, although not based in North Dakota, has successfully drilled in the Bakken Formation in North Dakota, where they own approximately 320,000 net acres. The stock has a P/E of 24, a PEG of 0.89, and a yield of 0.6%.

Disclosure: The author does not own any of the above.

Comments

[john s. gordon:]

i remember what a former ND resident told me (had worked @ the beulah gasification plant) about low state expenses for welfare payments - - 50 below keeps out the riffraff.
> jack

2008 Sep 08 08:38 AM

[KevindF:]

Thanks to LSS, ND is the number two dumping ground for foreign nationals.

2008 Sep 08 05:57 PM

[dale fish:]

I rember when ND did not have a state incom tax. Be nice if we were able to get back to that with the big oil boom.

2008 Sep 11 06:27 AM