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George Soros more than doubles position in YPF SA (YPF, USO, REPYY)

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Legendary investor George Soros has more than doubled his position in YPF SA ( YPF , quote ), increasing his holdings from 233,400 shares to 544,400. At the moment, his stake in the Argentine oil producer is now worth nearly $18 million.

YPF SA is Argentina's largest integrated oil and gas company and is down almost 30% year to date. Its business is structured in six activities: exploration & production, refining & logistics, marketing, chemicals, lubricants and gas.

The majority shareholder in YPF is Spanish oil producer Repsol YPF SA ( REPYY , quote ).

YPF's earnings per share forecast for the current year is $3.87 and $4.61 next year. According to the consensus estimates, its top line is expected to grow 9.30% next year.

On a quarter-by-quarter basis, both sales and earnings growth are up. EPS growth this year is almost 80% and for the next year it is expected to be close to 20%. YPF SA now pays a dividend of over 10% with a sustainable payout ratio.

The entire global oil industry is suffering, with United States Oil ( USO , quote ), the exchange-traded fund that tracks West Texas Intermediate crude, is now around $36.30, down from its year high of around $45.60.

Economic growth is falling or is projected to do so in Europe, India, Brazil and China, but these conditions will not last -- over the long run, few expect oil prices to decline.

With YPF shares now around $33, the mean analyst target price over the next year is $50.90, reflecting 55% in potential upside.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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