Tag: dirt

This Dividend-Paying Energy Stock Thinks Its Shares Are Dirt Cheap

This year has been a bit of a whirlwind for Targa Resources (NYSE:TRGP). Like most energy companies, the midstream service provider made drastic changes as oil prices plunged earlier this year, slashing both its dividend and capital spending program to shore up its balance sheet. That put a lot of pressure on its stock price, which has plummetted nearly 65% this year.

However, the company thinks the sell-off is overdone, especially given the significant improvement in its financial profile and market conditions. That led it to authorize a $500 million stock repurchase program to gobble up a meaningful amount of its beaten-down shares. 

People making calculations with a stock chart in the foreground.

Image source: Getty Images.

Bouncing back faster than anticipated

Targa Resources recently provided investors with an update to its outlook for 2020. The midstream company noted that despite the impacts and uncertainties caused by COVID-19, its “overall business performance has been strong.” That leads it

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This FTSE 250 stock is dirt cheap. Here’s why I would still avoid it

A cheap stock price can appear too good to be true. I believe this is the case for FTSE 250-listed First Group (LSE:FGP). Despite a dirt cheap price, there is just too much risk for it to be a viable investment in my opinion. 

FTSE 250 opportunity or one to avoid?

First Group is a leader in the passenger transport industry and splits its business across five main divisions. These include an extensive bus and rail network. It possesses a broad footprint across the UK and North America employing over 100,00 people. FGP operates, manages, or maintains a fleet of nearly 60,000. Last year alone, it boasted carrying over 2bn passengers across its platforms.

Covid-19 and the ensuing market crash ravaged the FGP share price. Between February and March of this year, it lost nearly 80% of its share price value. It tumbled to 28p per share, from over

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