I cannot buy a farm today that yields 8%, net of expenses. I cannot buy a rental property that yields 8%, net of expenses.
I cannot buy one of those silly oil trusts that yields 8%, but YPF has the ability to expand production.
I am pretty charged up over YPF right now and I would not worry too much about the market.
Thanks for the link.
JD, thanks for the advice. I know oil and gas stocks are volatile.
I just found this older back in Dec 2010 article and it also makes me feel like YPF is a good long term hold.
The hedge fund, Eton Park, has an option to buy more shares at $43 until 2012, so maybe the $43 level is the bottom? I did not check further to see if Eton Park has increased their ownership since the article was published. The article also likes the fact that Spain is selling off their stake.
Annual div rate 3.50----if it went ex divvy today, it would yield 8.3% at an annual rate. Try to find any other oil/gas stock with that kind of yield and prospects as good as YPF. U.S. Float now $1.3 billion so well worth while for a research report. They will earn $5.25 this year and the divvy will be a minimum of $4.00. Yields 9.4% on this years expected payout. Will pay 8 pesos next time. Stock will trade up to $50.
Do you think once they do we will have a bounce in the stk price?
Getting a nice dividend and then having the stock continually drop does not help, especially since they pay the dividend twice a year. I think people thought the dividend would be higher. $1.75 is about a 4% dividend so annually it is 8%......not bad but again, not as high as other message board folks thought.