Read this and tell me its not a buy. The only reason it was down was because of the litigation and that is over
Highlights from the analysis by TheStreet Ratings Team goes as follows:
The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues rose by 20.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
HGT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
HUGOTON ROYALTY TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, HUGOTON ROYALTY TRUST increased its bottom line by earning $0.87 versus $0.58 in the prior year.
The gross profit margin for HUGOTON ROYALTY TRUST is currently very high, coming in at 100.00%. HGT has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, HGT's net profit margin of 80.49% significantly outperformed against the industry.
HGT has underperformed the S&P 500 Index, declining 14.80% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
That is clearly a computer generated article written by a computer that has no idea that HGT is a trust nor even what a trust means.
"HGT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign."
Duh, yes, because US trusts are not allowed to have debt. So not doing something that it is not allowed to do is a "relatively favorable sign"? My advice is to ignore ignorant articles like this.
That is exactly my point. They said they can't say to buy it because it hasn't performed well over the last year although all the fundamentals look great. I'm not sure what they were trying to do with this article. It looks like they are saying to buy it for anybody with common sense. Litigation was holding it down in my opinion which is now behind it and the rest of the story indicates a buy. Revenues, gas prices and margins are all up.
They're saying its not a buy because it has been down while all the fundamental are up and with litigation behind it it is now time to buy. The old saying is buy low and sell high. If this article isn't saying that I don't what is. Don't wait for firms to come out with buy ratings by that time much of the meat will have been taken.