Undervalued Large Oil Company - Expected to Bounce with Potential Short Squeeze

PAA is one of the largest pipelines that run and supply the US. During the oil crisis in mid-2020 last year, PAA took a massive nosedive due to the oversupply of oil, but has recovered considerably and has been a dominant market player since. Recently, they are bound to have a solid dividend payout with a solid earnings report. Their current price to book value is at 0.83 which means that their current price doesn't even cover what they have in terms of assets or liabilities. Their price to earnings ratio is 4.44 which is quite low given to industry peers such as WES which is trading at a PE ratio of 13.59.  With a solid earnings report, a hefty dividend payout, crude oil on the rebound with the restart of tourism - a high contributor to global oil consumption. (Don't worry, I'll have a few environmentally friendly companies out soon) the only risk is that if the Biden administration places additional restrictions on the industry which may limit future growth.  All technical signals from a 50, 100, 150, 200-day moving average, alongside the MACD Oscillator, indicate this stock is a buy. 

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jackfzhang

Feb 5, 2021

9.20%

Change % Since Posting

8.97

Price When Posted

0.82

Change Since Posting

PAA

Plains All American Pipeline LP - Unit

9.79

-0.21
-2.15%
Current Price

Undervalued Large Oil Company - Expected to Bounce with Potential Short Squeeze

bullish

PAA is one of the largest pipelines that run and supply the US. During the oil crisis in mid-2020 last year, PAA took a massive nosedive due to the oversupply of oil, but has recovered considerably and has been a dominant market player since. Recently, they are bound to have a solid dividend payout with a solid earnings report. Their current price to book value is at 0.83 which means that their current price doesn't even cover what they have in terms of assets or liabilities. Their price to earnings ratio is 4.44 which is quite low given to industry peers such as WES which is trading at a PE ratio of 13.59. 

With a solid earnings report, a hefty dividend payout, crude oil on the rebound with the restart of tourism - a high contributor to global oil consumption. (Don't worry, I'll have a few environmentally friendly companies out soon) the only risk is that if the Biden administration places additional restrictions on the industry which may limit future growth. 

All technical signals from a 50, 100, 150, 200-day moving average, alongside the MACD Oscillator, indicate this stock is a buy. 

 

 

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read-time
1 min

9.89

Target Price

8/ 10

Confidence

6-12 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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Sentiment
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Other Catalyst

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