Pampa Energia share buybacks ought to be good for the price
Pampa Energia (an Argentinian electrical utility and petrochemical producer) is a tough company to gauge, because it's a foreign company and its earnings are unpredictable. It appears very inexpensive with a P/E under 1.5, but analysts expect losses for the next two quarters. Forward P/E is 4.5. The company has a merger in process with PEFM, to be completed in July. Unfortunately I can't find much analysis of the merger.
Oddly, this stock trades a little differently on Argentina's stock exchange than it does on the New York stock exchange. Here's the chart on the Argentinian exchange, BYMA:
It looks like American traders reacted much more to the merger between Pampa and Petrobras back in 2016. Excluding the anomalous period from 2016 to 2018, the two charts look more similar. However, Pampa is still down more since its last earnings on the US than on the Brazilian exchange.
Given the lack of good information available on this company in English, I won't be buying any. But just taking a crack at a prediction for curiosity's sake, I'd guess the stock will start to move higher. Here are some things that should help. First, oil prices are in an uptrend. Second, analyst ratings on the stock have been rising, and it's now got an 8.7/10 summary score from Thompson Reuters. Third, Pampa has been buying back shares at the current price. Yesterday it bought about a million dollars' worth. And fourth, Pampa has support around $15.
This is a longer term play; look for a test of the trend line sometime in the next eight months.
Oddly, this stock trades a little differently on Argentina's stock exchange than it does on the New York stock exchange. Here's the chart on the Argentinian exchange, BYMA:
It looks like American traders reacted much more to the merger between Pampa and Petrobras back in 2016. Excluding the anomalous period from 2016 to 2018, the two charts look more similar. However, Pampa is still down more since its last earnings on the US than on the Brazilian exchange.
Given the lack of good information available on this company in English, I won't be buying any. But just taking a crack at a prediction for curiosity's sake, I'd guess the stock will start to move higher. Here are some things that should help. First, oil prices are in an uptrend. Second, analyst ratings on the stock have been rising, and it's now got an 8.7/10 summary score from Thompson Reuters. Third, Pampa has been buying back shares at the current price. Yesterday it bought about a million dollars' worth. And fourth, Pampa has support around $15.
This is a longer term play; look for a test of the trend line sometime in the next eight months.
Trade closed manually:
This has been a disappointing trade, in part because earnings forecasts have been revised downward.