Shutterstock photo
Markets

Repsol YPF brings blue-chip oil to the pink sheets (USO, TOT & REPYY)

Shutterstock photo

Shutterstock photo

While many European stocks have fallen due to the debt woes of the continent, Repsol YPF ( REPYY , quote ), Total SA ( TOT , quote ) and Eni SPA ( E , quote ) have all risen along with the price of oil.

Repsol YPF, headquartered in Spain, recently announced a major find in the Vaca Muerta formation of Argentina, its biggest ever. Even though it fell to the pink sheets a few weeks ago, Repsol YPF still has the heft it did when it was a NYSE stock trading under "REP."

This stock has a market cap of over $37 billion and an average volume of 3 million shares daily. Like other oil concerns, Repsol YPF has gained recently on the last few months' commodity boom and is up 20% since the start of October.

By comparison, crude petroleum prices -- as embodied by United States Oil ( USO , quote ), the biggest exchange-traded fund for oil -- are up almost 30% over that period, so REPYY has lagged its underlying asset.

True, being banished to the pink sheets keeps the strong financials of Repsol YPF away from many potential buyers. Generally, institutional investors are not allowed to shares of companies on the pink sheets.

That is unfortunate for them, given the fact that Repsol YPF has a price-to-earnings ratio of around 5 and a dividend yield of about 5%.

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.

Other Topics

Stocks

Latest Markets Videos