Gran Tierra Energy Ord Shs T.GTE

Perfect Piotroski f-score

[Torontojay]

Gran Tierra scores a perfect 9! 

I have identified 2 companies that trade on the TSX with a market capitalization that exceeds $100m and that score a perfect 9 on the Piotroski scale. Joseph Piotroski preferred stocks that were in the lowest quintile of price to book stocks. Gran Tierra Energy has a price to book of 
~ 0.712 
 

The criteria is below: 

Profitability Criteria Include: 

• Positive net income (1 point)
• Positive return on assets (ROA) in the current year (1 point)
• Positive operating cash flow in the current year (1 point)
• Cash flow from operations being greater than net Income (quality of earnings) (1 point)

Leverage, Liquidity, and Source of Funds Criteria Include: 

• Lower amount of long term debt in the current period, compared to the previous year (decreased leverage) (1 point)
• Higher current ratio this year compared to the previous year (more liquidity) (1 point)
• No new shares were issued in the last year (lack of dilution) (1 point).

Operating Efficiency Criteria Include: 

• A higher gross margin compared to the previous year (1 point)
• A higher asset turnover ratio compared to the previous year (1 point)

[monte8]

So why is the stock price so low?  I mean with the WTI hovering around $1.80 and company buying up shares , the share price should be north of $2.00. You've said all things nice in your post.  These are good times in the oil industries and making money.  The share price does not reflect tis.  Imagine if all this good times turn, where will the share price be then