Yangarra Resources Ltd T.YGR

Trevor Rose's Insights -DON"T BUY

[Possibleidiot01]

DON'T BUY

Yangarra Resources(YGR-T)

08/12/2023

 

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the prior year, its FFO declined by 36%, and sales decreased by 28%. This was a tough quarter for the company, although it continues to carry a low net debt balance and generates positive free cash flow, but given the challenging oil market backdrop, we feel YGR may see some downside pressure in the near term. It trades at a cheap valuation, but we do not like its recent negative momentum. 
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[kavern23]

Thanks for the post...and I don't want to come across as a bully....but thats really weak analysis. Not saying saying the call of "dont buy" YGR is wrong and face more downward pressure in near term I agree and all cardium companies face downside pressure in near term. I take better weight to looking at this cardium companies financials between 2018 and 2019 and  what things

[Hendrick3]

The don't buy rating in hindsight was appropriate but the rationale is ridiculous. They had expectations of eps of 13 cents in a quarter on a $1.50 stock? I hope they realize this stock is trading at a 3x earnings multiple which is unheard of if the current results are maintainable. Suggesting they disappointed in the 3q was ridiculous unless you haven't looked at nat gas price in a year