Eagle Rock Energy Partners, L.P. : Bearish trend will come
Eagle Rock Energy gathers, compresses, treats, processes, transports and sells natural gas, and fractionates and transports natural gas liquids. The Company also acquires, produces, and develops, oil and natural gas properties.
From a fundamental viewpoint, the group is in a bad financial situation. The
financial situation of the company is worrying with an important debt level. Leverage is at 4x for the current year. The share is highly valued; in fact is trading 73 times its earnings estimates.
From a technical viewpoint, prices are in a downward trend. Moving averages are trending down and put pressure on the stock, which confirms this downward momentum. Taking into account fundamental and technical elements, investors can initiate a short position with a price target at USD 8.3. A return towards USD 9.2, the short-term resistance area, will invalidate the bearish strategy, which justifies a stop loss.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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75,7x |
40,1x |
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Capitalization / Revenue
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1,10x |
1,09x |
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EV / Revenue
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2,13x |
2,17x |
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EV / EBITDA
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10,2x |
9,45x |
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Yield (DPS / Price)
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10,2% |
10,4% |
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