Posted at 5:00 AM on The Street.com
(NYSE:PZE) has been upgraded by from sell to hold. The company’s strengths are questionable like its increase in net income but I fear it’s weak operating cash flow. Typical traders delight and investors fright gap here.
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Highlights from the street.com report:
- The net income increased by 109.8% when compared to the same quarter one year prior, rising from $15.07 million to $31.61 million.
- PZE’s debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems.
- PETROBRAS ARGENTINA SA This company has reported somewhat bumpy earnings recently. The Streets analyst feels it is poised for EPS growth in the coming year. During the past fiscal year, PETROBRAS ARGENTINA SA reported lower earnings of $0.00 versus $0.95 in the prior year. This year, the market expects an increase in earnings to $1.91 from $0.00.
- Net operating cash flow has decreased to $154.37 million or 36.65% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm’s growth is significantly lower.
- PZE’s stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 30.19%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, PZE is still more expensive than most of the other companies in its industry.
Petrobras Argentina S.A. is a diversified energy company. They engage in the oil and gas exploration and production activities. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Petrobras Argentina has a market cap of $9.28 trillion and is part of the basic materials sector and energy industry. Shares are down 27.2% year to date as of the close of trading on Tuesday.
ALL SOUNDS GOOD FOR A TRADE. TIGHT STOP LIMIT HERE AS I AM MOST CERTAIN THIS IS A SWING ONLY AS INSTITUTIONS WILL SEE THIS BOUNCE AND IT IS JUST ABOVE $5 NOW WHERE THEY CAN NOW INVEST>>>>>>>>>>>ALL THE STUFF ABOVE IS NICE BUT THIS IS MY ONLY REASON FOR TRADING HERE.