Subscription: Value Stocks
$GPRK - the stock we talked about two days ago rallies 6.5%
GeoPark Ltd is an independent oil and natural gas exploration and production company. Its business activities include drilling, developing and producing oil and gas. The company has exploration blocks in Colombia, Chile, Brazil, Peru, and Argentina. The revenue generated by the company includes ale of crude oil, condensate and natural gas. The company’s business segments based on the geographic region are Colombia, Chile, Brazil, Peru, and Argentina.
I first posted about GPRK on Monday: “We do not often see such a clean five wave up fractal. It looks ready to rally in wave C of 5 that may easily stretch to over $25.00”
Today it is adding +6.5%. That example shows you can find good stories even in such a bad corner of the market as energy is!
GPRK - Daily Chart updated on 6-19-2019
Financial Strength
The company has great profitability ratios and has a limited debt slightly exceeding annual EBITDA. And the company is cheap. Currently it is traded at 9 x Price-to-Free-Cash-Flow. I have two main concerns though. First, it is a fairly small $1 bln market cap stock. I normally do not buy any company that has a smaller market cap than $1 bln. So this one is on the edge. The second concerns is that the company is an energy play. And long term I have been bearish on crude. However, that company has been able to keep making money even in that tough market environment. I will go long with a small position and will see how it works.
Operating Margin
11.7
Net
Margin
43.6
Return on Capital
59
Price-to-Free-Cash-Flow
9
Debt-to-Ebitda
1.3
Dividend Yield
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