written by reader Transportadora de Gas Del Sur (TGS)

by blufox | November 2, 2011 3:28 pm


Came across this interesting item in late October 2011 and promptly bought some. It is an Artgentinian natural gas[1] pipeline company that seems to bear an overly large dividend, though I did not purchase it for the dividend, more for the upside potential. Anyone else own, interested in the above? Looking for feedback,
as always,
/* Phil */

Endnotes:
  1. natural gas: https://www.stockgumshoe.com/tag/natural-gas/

Source URL: https://www.stockgumshoe.com/2011/11/microblog-transportadora-de-gas-del-sur-tgs/


4 responses to “written by reader Transportadora de Gas Del Sur (TGS)”

  1. This one’s new to me, Phil — interesting stock, they do have a bit of a baby Shale gas boom down in Argentina … though they’re also trying like crazy to scare away all foreign investors and commodity companies, so perhaps that’s the reason for the seemingly low price. Is the dividend supported by cash flow?

  2. blufox says:

    Meant to respond here earlier, Travis. Regarding the financials, they are available at the company web site: http://www.tgs.com.ar/
    In terms of the yield, both Google Finance and Yahoo seem to report it incorrectly running from 47.39% to 46.6% returns respectively. If one examines the last 6 months financials downloadable from their web site (above), they are displayed in Argentinian Pesos, not dollars.
    The company had 118.7 million Argentinian pesos net income for 6 mos. ending June 2011. There are 158,900,000 shares according to Yahoo statistics. If one doubles the net income that comes to 237.4 million annual net income. If one divides the number of shares into this one gets 1.49 pesos per share which equals $0.35. So the figures quoted by both Yahoo and Google Finance which show a return of 1.48 per share do not show it correctly IN PESOS. The return in US dollars is approximately $0.35/share so the yield is not the 47.6% of Yahoo nor the 48.46% of Google Finance but is more like 11% based on Friday’s close of $3.17.

  3. peter says:

    Phil, I read with interest your analysis of tgs,fom nov.’11 and wonder if you still hold tgs and whether its price action has dissapointed you and whether you see it able to maintain its dividend level, peter

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