Q: Thoughts on this resource stock now that its price has pulled back somewhat?
Thnx 5I
Dave
Thnx 5I
Dave
5i Research Answer:
JOY is a small ($386M market cap) oil and gas producer, and it focuses on mature, conventional reservoirs rather than shale mega-growth. It does not pay a yield, no analysts cover the name, and sales growth has been volatile. Margins are expanding though, and it is cash flow negative. Debt leels are OK, and it trades at a decent valuation. Given the current market backdrop, we would be OK with this name, but we would be mindful of its small size and potential volatility.