Lynda holds YPF 15.54: Now that the stock is declining aggressively from the mid $20s, what happened?

An amazing growth rate in the face of an oil bear market where other stocks in the sector were having contracting stats. YPF was deemed one of the best names in its space and many top flight investors took big positions. One could do a 3 point calculation and look to see YPF trading at $6 per share, and yet although down from higher levels, it is around $16 or $17. Why? While crude meandered in the $90s YPF spent quite a long time trading around $12. Today crude has declined by half to $45 and the stocks of the integrated oil producer space declined in lock step. In mid 2012, crude was about the same at $90/barrel when the Argentine Government nationalized about 50% of YPF and cut the very high dividends to the present level as the stock declined to about $12 per share.


Sheila:
YPF Sociedad Anonima (NYSE: YPF ) has long been favored by many analysts and investors.

Cordelia:
As Argentina's next Administration tightens, is $50/barrel next, and a $12 YPF?

Milda:
Now, the $80/barrel safe harbor seems to be vanishing too; so hello $66/barrel for YPF.

Christi:
As this is not the case, a buy opportunity has clearly emerged now, and it will certainly be a fruitful long term hold.

Celesta:
Its superior performance in this industry, coupled with its recent substantial growth in earnings amidst low oil prices, should necessitate higher valuation.

Blanch:
Moreover, positive trends in the industry in Argentina still remain untapped, and YPF S.A is sure to use this as substantial leverage, as it already has a dominant stance in this industry.

Luis:
Management Effectiveness : The company had significantly higher ROE and ROA.

Luisa:
Profitability : The company displayed substantially higher profitability compared to its industry and sector, demonstrating its financial superiority in the current low oil price environment.

Kiyoko:
Financial Strength : The industry and sector have relatively less liabilities, although the company's level of liabilities is not a major concern.

Shawanna:
Dividend Yield : The dividend yield is disappointing, given the higher averages of both the industry and sector.

Ypf Sociedad Anonima (NYSE:YPF)
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