Q: I've owned this stock for a good while and have made some money with Ian t. Back in July it was at $ 30.00 and now approx $ 24.00. I've heard something about the local government wanting in on the money it's making ? Any info on this and would you sell or hold ? Thanks
5i Research Answer:
This is always a risk with international producers, but we haven't seen anything 'new' here. Still, President Gustavo Petro's strong policy opposition to oil development remains a significant headwind for investor sentiment in the region. This, though, we think is more than represented in the company's extremely cheap valuation (6Xearnings, 6.5% dividend, no net debt). We would see it as a HOLD.