YPF-the Argentine and Spanish Oil and Gas Giant
Repsol-YPF is to Argentina what Exxon Mobil (XOM) is to the United States.
It has a PE or 15, (Shares are listed on NYSE with symbol YPF), and could be perceived as one of the undervalued Oil stocks in the world. But that is understandable-after the Argentine collapse in 2001, the risk profile of the country has stayed high and investors are wary of Investing in Argentina stocks. But let's go over the company a bit.
* Repsol YPF operates in 25 countries, and is THE leader in Spain and Argentina. It is an important operator in Peru and Ecuador.
* Reserves are located in Latin America and North Africa.
* It operates nine refineries, five in Spain, three in Argentina, and one in Peru.
* The LPG (Gas) business is 3 million tons per year. It is the third largest company in the world for LPG production.
See stock chart of YPF here.
When Argentina went into crisis, the stock collapsed from $35 to $8. It then recovered really fast, and right now trades at $55. With Oil Prices rocketing and the Oil stocks in a secular bull market, this is another way to play Oil and Argentina. You are betting on a hot sector, with a player (Argentina) who is coming out of its economic doldrums. And the Gas business where it is already a very efficient and big player, should make shareholders serious money in the years to come.
The stock sports dividend yield of 5%, making it one of the very attractive plays in the Oil sector, even for a value minded investor.
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Sanjay John G.
It has a PE or 15, (Shares are listed on NYSE with symbol YPF), and could be perceived as one of the undervalued Oil stocks in the world. But that is understandable-after the Argentine collapse in 2001, the risk profile of the country has stayed high and investors are wary of Investing in Argentina stocks. But let's go over the company a bit.
* Repsol YPF operates in 25 countries, and is THE leader in Spain and Argentina. It is an important operator in Peru and Ecuador.
* Reserves are located in Latin America and North Africa.
* It operates nine refineries, five in Spain, three in Argentina, and one in Peru.
* The LPG (Gas) business is 3 million tons per year. It is the third largest company in the world for LPG production.
See stock chart of YPF here.
When Argentina went into crisis, the stock collapsed from $35 to $8. It then recovered really fast, and right now trades at $55. With Oil Prices rocketing and the Oil stocks in a secular bull market, this is another way to play Oil and Argentina. You are betting on a hot sector, with a player (Argentina) who is coming out of its economic doldrums. And the Gas business where it is already a very efficient and big player, should make shareholders serious money in the years to come.
The stock sports dividend yield of 5%, making it one of the very attractive plays in the Oil sector, even for a value minded investor.
Subscribe now to The Wall Street Journal and get up to 8 weeks FREE
The Prudent Speculator -- Ranked #1 by Hulbert for 10, 15 and 20 year performance...Click Here!
If you subscribe to the Wall Street Journal or the Prudent Speculator(a Forbes.com publication) using the links above, I get a commission.
Sanjay John G.
