Ring Energy Stock (AMEX:REI), Trade Ideas

Ring Energy

Ring Energy Inc is an independent exploration and production company based in The Woodlands, Texas and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused in the Permian Basin of Texas. The drilling operations of the company target the oil and liquid rich producing formations in the Northwest Shelf, the Central Basin Platform, and the Delaware Basin all of which are part of the Permian Basin in Texas.

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<p>Ring Energy (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) reported quarterly earnings of $0.110 per share which missed the analyst consensus estimate of $0.120 by 8.33 percent.  The company reported quarterly sales of $99.943 million which beat the analyst consensus estimate of $97.121 million by 2.91 percent.  This is a 0.25 percent increase over sales of $99.698 million the same period last year.</p>


Earnings

Earnings Beats

Earnings Misses

Ring Energy Q4 2023 Adj EPS $0.110 Misses $0.120 Estimate, Sales $99.943M Beat $97.121M Estimate

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) is set to give its latest quarterly earnings report on Thursday, 2024-03-07. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Ring Energy will report an <strong>earnings per share</strong> (EPS) of $0.12. </p>
<p>Ring Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Historical Earnings Performance</h3>
<p>Last quarter the company beat EPS by $0.01, which was followed by a 2.84% drop in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q3 2023</strong></th>
<th><strong>Q2 2023</strong></th>
<th><strong>Q1 2023</strong></th>
<th><strong>Q4 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.12</td>
<td>0.10</td>
<td>0.12</td>
<td>0.16</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.13</td>
<td>0.14</td>
<td>0.14</td>
<td>0.13</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>-3.0%</td>
<td>-7.000000000000001%</td>
<td>5.0%</td>
<td>-2.0%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1709740891_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Ring Energy were trading at $1.4 as of March 05. Over the last 52-week period, shares are down 29.4%.  Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/REI/earnings"><strong>To track all earnings releases for Ring Energy visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Earnings Preview For Ring Energy

<p>Ring Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REI#NYSE">REI</a>) (&quot;Ring&quot; or the &quot;Company&quot;) today provided an operational and financial update for the&nbsp;fourth quarter&nbsp;of 2023, as well as production and capital spending&nbsp;guidance&nbsp;for the&nbsp;first quarter&nbsp;of 2024.</p>
<p><strong>Key&nbsp;</strong><strong>Highlights</strong></p>
<ul>
<li>Fourth quarter&nbsp;2023 sales volumes were approximately 19,400 barrels of oil equivalent per day (&quot;Boe/d&quot;) (70%&nbsp;oil), near the high end of the Company&#39;s&nbsp;guidance, which was 18,900 to 19,500 Boe/d;</li>
<li>Positively impacting&nbsp;fourth quarter&nbsp;sales was three full months of production from the recently completed acquisition of the Founders Oil &amp; Gas IV, LLC (&quot;Founders&quot; and the &quot;Founders Acquisition&quot;) assets that closed on August 15, 2023, as well as the success of the Company&#39;s 2023 development program that concluded in late November;</li>
<li>Further reduced debt by&nbsp;$3.0 million&nbsp;in the&nbsp;fourth quarter&nbsp;of 2023, while also funding the&nbsp;$11.9 million&nbsp;final payment in December for the Founders Acquisition;
<ul>
<li>Ended 2023 with&nbsp;$425 million&nbsp;of borrowings against the Company&#39;s credit facility;</li>
</ul>
</li>
<li>Guiding&nbsp;first quarter&nbsp;2024 average sales to be 18,000 to 18,500 Boe/d (~69%&nbsp;oil);
<ul>
<li>Impacting the Company&#39;s sales to date was deferred production of approximately 1,900 Boe/d for 10 days, which was associated with recent severe cold winter weather. Production has since been restored;</li>
<li>Ring completed its 2023 drilling program in late November and initiated its 2024 program in early January, with the first well expected to be online in February; and</li>
</ul>
</li>
<li>Anticipate&nbsp;first quarter&nbsp;capital spending of&nbsp;$37 million&nbsp;to&nbsp;$42 million, primarily associated with a phased, two-rig drilling program (one horizontal and one vertical);
<ul>
<li>Plan to drill four to five horizontal wells and four to six vertical wells.<br />
		&nbsp;</li>
</ul>
</li>
</ul>
<p>Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, &quot;We enjoyed record sales during the&nbsp;fourth quarter&nbsp;of 2023 near the high end of&nbsp;guidance, but more importantly exceeded the high end of our expectations for crude oil sales. The result was an outstanding&nbsp;fourth quarter&nbsp;and we look forward to reporting our full results in early March. Contributing to our success in the period was a full quarter of production impact from our recent Founders Acquisition, as well as the ongoing success of our 2023 drilling program that concluded in late November. In addition, we paid down debt by&nbsp;$3.0 million&nbsp;while making our final deferred payment of&nbsp;$11.9 million&nbsp;for the Founders Acquisition. Debt reduction remains a key priority for the Company, and our targeted acquisitions in 2022 and 2023 are allowing us to pay down debt at a much faster rate than we would have done on a standalone basis.&quot;</p>
<p>Mr. McKinney concluded, &quot;As we enter 2024, we intend to retain the flexibility to adjust capital spending levels commensurate with changing oil and gas prices. We began 2024 with a phased, two-rig drilling program, targeting our highest rate-of-return horizontal and vertical drilling inventory. This approach provides us with the flexibility necessary to respond to changing market conditions. As in the past, our efforts are squarely focused on enhancing the financial position of the Company, with further debt reduction a top priority. We appreciate the support of our stockholders and look forward to a successful 2024.&quot;</p>


Guidance

Ring Energy Reports Record Fourth Quarter Sales, Achieving Near-Top Guidance and Debt Reduction

Ring Energy Disclosed The Borrowing Base Being Reaffirmed At $600M Under Its $1.0B Senior Revolving Credit Facility

<p>Disclosed in the latest SEC filing, a significant insider purchase on December 4, involves <strong>John A Crum</strong>, Board Member at <strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>).</p>
<p><strong>What Happened:</strong> In a Form 4 filing on Monday with the <a href="https://www.sec.gov/Archives/edgar/data/0001384195/000162828023040646//Archives/edgar/data/1384195/000162828023040646/0001628280-23-040646-index.htm">U.S. Securities and Exchange Commission</a>, it was disclosed that Crum bought 50,000 shares of Ring Energy, amounting to a total of $83,700.</p>
<p><strong>Ring Energy</strong>'s shares are actively trading at $1.58, experiencing a down of 0.0% during Tuesday's morning session.</p>
<h3>All You Need to Know About Ring Energy</h3>
<p>Ring Energy Inc is an independent exploration and production company based in The Woodlands, Texas and is engaged in oil and natural gas development, production, acquisition, and exploration activities currently focused in the Permian Basin of Texas. The drilling operations of the company target the oil and liquids rich producing formations in the Northwest Shelf, the Central Basin Platform, and the Delaware Basin all of which are part of the Permian Basin in Texas.</p>
<h3>A Deep Dive into Ring Energy's Financials</h3>
<p><strong>Revenue Growth:</strong> Ring Energy's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately <strong>-0.77%</strong>. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.</p>
<p><strong>Profitability Metrics:</strong></p>
<ul>
<li>
<p><strong>Gross Margin:</strong> Achieving a high gross margin of <strong>50.18%</strong>, the company performs well in terms of cost management and profitability within its sector.</p>
</li>
<li>
<p><strong>Earnings per Share (EPS):</strong> With an EPS below industry norms, Ring Energy exhibits below-average bottom-line performance with a current EPS of <strong>-0.04</strong>.</p>
</li>
</ul>
<p><strong>Debt Management:</strong> Ring Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of <strong>0.59</strong>.</p>
<p><strong>Evaluating Valuation:</strong></p>
<ul>
<li>
<p><strong>Price to Earnings (P/E) Ratio:</strong> The current P/E ratio of <strong>5.85</strong> is below industry norms, indicating potential undervaluation and presenting an investment opportunity.</p>
</li>
<li>
<p><strong>Price to Sales (P/S) Ratio:</strong> With a P/S ratio of <strong>0.82</strong> below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.</p>
</li>
<li>
<p><strong>EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization):</strong> Ring Energy's EV/EBITDA ratio of <strong>3.91</strong> exceeds industry averages, indicating a premium valuation in the market</p>
</li>
</ul>
<p><strong>Market Capitalization Analysis:</strong> Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.</p>
<p><a href="https://www.schwab.com/brokerage?aff=XEC"><em>Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</em></a></p>
<h3>Illuminating the Importance of Insider Transactions</h3>
<p>While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.</p>
<p>When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.</p>
<p>A new purchase by a company insider is a indication that they anticipate the stock will rise.</p>
<p>On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.</p>
<h3>Unlocking the Meaning of Transaction Codes</h3>
<p>Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A <strong>P</strong> in Box 3 indicates a purchase, while <strong>S</strong> signifies a sale. Transaction code <strong>C</strong> denotes the conversion of an option, and transaction code <strong>A</strong> denotes a grant, award, or other acquisition of securities from the company.</p>
<p><a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001384195"><strong>Check Out The Full List Of Ring Energy's Insider Trades.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Smart Money Move: John A Crum Grabs $83K Worth Of Ring Energy Stock

<p>Ring Energy (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) reported quarterly earnings of $0.13 per share which beat the analyst consensus estimate of $0.12 by 8.33 percent. This is a 53.57 percent decrease over earnings of $0.28 per share from the same period last year.  The company reported quarterly sales of $93.68 million which beat the analyst consensus estimate of $87.23 million by 7.40 percent.  This is a 0.77 percent decrease over sales of $94.41 million the same period last year.</p>


Ring Energy Q3 2023 Adj EPS $0.13 Beats $0.12 Estimate, Sales $93.68M Beat $87.23M Estimate

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) is set to give its latest quarterly earnings report on Thursday, 2023-11-02. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Ring Energy will report an <strong>earnings per share</strong> (EPS) of $0.12. </p>
<p>Ring Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Historical Earnings Performance</h3>
<p>Last quarter the company beat EPS by $0.04, which was followed by a 6.64% drop in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q2 2023</strong></th>
<th><strong>Q1 2023</strong></th>
<th><strong>Q4 2022</strong></th>
<th><strong>Q3 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.10</td>
<td>0.12</td>
<td>0.16</td>
<td>0.24</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.14</td>
<td>0.14</td>
<td>0.13</td>
<td>0.28</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>-6.64%</td>
<td>4.73%</td>
<td>-1.51%</td>
<td>8.97%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2023/1698865277_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Ring Energy were trading at $1.74 as of October 31. Over the last 52-week period, shares are down 44.03%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/REI/earnings"><strong>To track all earnings releases for Ring Energy visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Ring Energy's Earnings Outlook

<p><strong>Anthony B. Petrelli</strong>, Director at <strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>), reported a large insider buy on September 13, according to a new SEC filing. </p>
<p><strong>What Happened:</strong> A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001384195/000162828023032216//Archives/edgar/data/1384195/000162828023032216/0001628280-23-032216-index.htm">U.S. Securities and Exchange Commission</a> on Wednesday showed that Petrelli purchased 50,000 shares of Ring Energy. The total transaction amounted to $95,980. </p>
<p><strong>Ring Energy</strong> shares are trading up 2.76% at $2.04 at the time of this writing on Thursday morning.</p>
<p><a href="https://www.schwab.com/brokerage?aff=XEC"><em>Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</em></a></p>
<h3>Why Insider Transactions Are Important</h3>
<p>Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. </p>
<p>In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.</p>
<p>When a company insider makes a new purchase, that is an indication that they expect the stock to rise.</p>
<p>Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.  </p>
<h3>Transaction Codes To Focus On</h3>
<p><a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A  <strong>P</strong> in Box 3 indicates a purchase, while  <strong>S</strong> indicates a sale. Transaction code <strong>C</strong> indicates the conversion of an option, and transaction code <strong>A</strong> indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.</p>
<p><a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001384195"><strong>Check Out The Full List Of Ring Energy's Insider Trades.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Director of Ring Energy Purchased $95K In Stock

<h3>What is a Value Stock?</h3>
<p>A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued. </p>
<h2>Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:</h2>
<ol>
<li><strong>Liberty Energy</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LBRT#NYSE">LBRT</a>) - P/E: 4.72</li>
<li><strong>US Silica Holdings</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLCA#NYSE">SLCA</a>) - P/E: 6.33</li>
<li><strong>Phillips 66</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>) - P/E: 4.9</li>
<li><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) - P/E: 2.05</li>
<li><strong>Granite Ridge Resources</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRNT#NYSE">GRNT</a>) - P/E: 5.82</li>
</ol>
<p>This quarter, Liberty Energy experienced a decrease in earnings per share, which was $0.9 in Q1 and is now $0.87. Its most recent dividend yield is at 1.32%, which has decreased by 0.19% from 1.51% in the previous quarter.</p>
<p>This quarter, US Silica Holdings experienced a decrease in earnings per share, which was $0.64 in Q1 and is now $0.6. Most recently, the company reported a dividend yield of 1.33%, which has decreased by 3.15% from last quarter's yield of 4.48%.</p>
<p>This quarter, Phillips 66 experienced a decrease in earnings per share, which was $4.21 in Q1 and is now $3.87. The company's most recent dividend yield sits at 4.14%, which has decreased by 0.33% from 4.47% last quarter. </p>
<p>Ring Energy looks to be undervalued. It possesses an EPS of $0.14, which has not changed since last quarter (Q1). Most recently, Granite Ridge Resources reported earnings per share at $0.19, whereas in Q1 earnings per share sat at $0.21. Its most recent dividend yield is at 5.64%, which has decreased by 2.65% from 8.29% in the previous quarter.</p>
<p>These 5 value stocks were selected by <strong>Benzinga Insights</strong> based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.</p>


GRNT

LBRT

SLCA

A Look Into Energy Sector Value Stocks

<p>Ring Energy (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) reported quarterly earnings of $0.14 per share which beat the analyst consensus estimate of $0.10 by 40 percent. This is a 51.72 percent decrease over earnings of $0.29 per share from the same period last year.  The company reported quarterly sales of $79.35 million which missed the analyst consensus estimate of $85.00 million by 6.65 percent.  This is a 6.61 percent decrease over sales of $84.96 million the same period last year.</p>


Ring Energy Q2 Adj EPS $0.14 Beats $0.10 Estimate, Sales $79.35M Miss $85.00M Estimate

Ring Energy Says Q2 2023 Sold 17,271 Barrels Of Oil Equivalent Per Day

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) is set to give its latest quarterly earnings report on Thursday, 2023-08-03. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Ring Energy will report an <strong>earnings per share</strong> (EPS) of $0.10. </p>
<p>Ring Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Historical Earnings Performance</h3>
<p>Last quarter the company beat EPS by $0.02, which was followed by a 4.73% increase in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q1 2023</strong></th>
<th><strong>Q4 2022</strong></th>
<th><strong>Q3 2022</strong></th>
<th><strong>Q2 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.12</td>
<td>0.16</td>
<td>0.24</td>
<td>0.23</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.14</td>
<td>0.13</td>
<td>0.28</td>
<td>0.29</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>4.73%</td>
<td>-1.51%</td>
<td>10.03%</td>
<td>9.48%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2023/1691006478_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Ring Energy were trading at $2.34 as of August 01. Over the last 52-week period, shares are down 14.31%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/REI/earnings"><strong>To track all earnings releases for Ring Energy visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


Preview: Ring Energy's Earnings

WIIM

Ring Energy shares are trading higher after the company announced it has entered into an agreement to acquire the Central Basin Platform assets of Founders Oil & Gas IV for $75 million in cash.

<p>Ring Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REI#NYSE">REI</a>) (&quot;Ring&quot; or the &quot;Company&quot;) today announced it has entered into an agreement to acquire the Central Basin Platform (&quot;CBP&quot;) assets of Founders Oil &amp; Gas IV, LLC (&quot;Founders&quot;) for&nbsp;$75 million&nbsp;in cash (the &quot;Transaction&quot;). Founders&#39; CBP operations are located in the Permian Basin in Ector County, Texas and are focused on the development of approximately 3,600 net acres that are similar to Ring&#39;s CBP assets acquired in 2022 from Stronghold Energy Operating II, LLC and its affiliate (&quot;Stronghold&quot;).<br />
&nbsp;</p>
<p>Total consideration of&nbsp;$75 million, subject to customary closing adjustments, consists of&nbsp;$60 million&nbsp;in cash at closing and&nbsp;$15 million&nbsp;deferred cash payment due four months after closing. The Transaction will be funded with cash on hand and borrowings under Ring&#39;s recently reaffirmed senior revolving credit facility.</p>


Ring Energy To Acquire Central Basin Platform Assets of Founders Oil & Gas IV, LLC For $75M Including Earnout Consideration

<p>Ring Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/REI#NYSE">REI</a>) (&quot;Ring&quot; or the &quot;Company&quot;) today announced a&nbsp;$25 million&nbsp;net reduction of borrowings during the&nbsp;second quarter&nbsp;on its senior revolving credit facility with a current borrowing base of&nbsp;$600 million&nbsp;(the &quot;Credit Facility&quot;). The Company also announced the sale of its non-core asset position in the West Texas&#39; Delaware Basin (the &quot;Delaware Transaction&quot;) to an unaffiliated private buyer.</p>


Asset Sales

Ring Energy Announces $25M Debt Reduction in Q2 2023 and Sale of Non-Core Delaware Basin Assets

<h3>What Defines a Value Stock?</h3>
<p>A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock. </p>
<h2>Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:</h2>
<ol>
<li><strong>San Juan Basin Royalty</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJT#NYSE">SJT</a>) - P/E: 3.8</li>
<li><strong>ProFrac Holding</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACDC#NASDAQ">ACDC</a>) - P/E: 5.4</li>
<li><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) - P/E: 1.56</li>
<li><strong>Petrobras Brasileiro</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBR#NYSE">PBR</a>) - P/E: 2.13</li>
<li><strong>Northern Oil &amp; Gas</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOG#NYSE">NOG</a>) - P/E: 1.89</li>
</ol>
<p>Most recently, San Juan Basin Royalty reported earnings per share at $0.77, whereas in Q4 earnings per share sat at $0.62. Its most recent dividend yield is at 12.01%, which has decreased by 36.1% from 48.11% in the previous quarter.</p>
<p>ProFrac Holding has reported Q1 earnings per share at $0.4, which has decreased by 51.22% compared to Q4, which was 0.82. Ring Energy has reported Q1 earnings per share at $0.14, which has increased by 7.69% compared to Q4, which was 0.13. Most recently, Petrobras Brasileiro reported earnings per share at $1.12, whereas in Q4 earnings per share sat at $1.26. The company's most recent dividend yield sits at 57.65%, which has increased by 38.45% from 19.2% last quarter. </p>
<p>This quarter, Northern Oil &amp; Gas experienced an increase in earnings per share, which was $1.43 in Q4 and is now $1.76. Its most recent dividend yield is at 4.46%, which has increased by 0.2% from 4.26% in the previous quarter.</p>
<p>These 5 value stocks were selected by <strong>Benzinga Insights</strong> based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.</p>


ACDC

5 Value Stocks To Watch In The Energy Sector

<p>Ring Energy (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) reported quarterly earnings of $0.14 per share which beat the analyst consensus estimate of $0.12 by 16.67 percent. This is a 36.36 percent decrease over earnings of $0.22 per share from the same period last year.  The company reported quarterly sales of $88.08 million which missed the analyst consensus estimate of $94.31 million by 6.60 percent.  This is a 43.97 percent increase over sales of $61.18 million the same period last year.</p>


Ring Energy Q1 EPS $0.14 Beats $0.12 Estimate, Sales $88.08M Miss $94.31M Estimate

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) reported its Q1 earnings results on Wednesday, May 3, 2023 at 04:44 PM.</p>
<p>Here's what investors need to know about the announcement.</p>
<h3>Earnings</h3>
<p>Ring Energy beat estimated earnings by 16.67%, reporting an EPS of $0.14 versus an estimate of $0.12.</p>
<p>Revenue was up $26.90 million from the same period last year.</p>
<h3>Past Earnings Performance</h3>
<p>Last quarter the company missed on EPS by $0.03 which was followed by a 1.51% drop in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q4 2022</strong></th>
<th><strong>Q3 2022</strong></th>
<th><strong>Q2 2022</strong></th>
<th><strong>Q1 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.16</td>
<td>0.24</td>
<td>0.23</td>
<td>0.19</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.13</td>
<td>0.28</td>
<td>0.29</td>
<td>0.22</td>
</tr>
<tr>
<td><strong>Revenue Estimate</strong></td>
<td>88.36M</td>
<td>72.53M</td>
<td>66.46M</td>
<td>57.78M</td>
</tr>
<tr>
<td><strong>Revenue Actual</strong></td>
<td>99.70M</td>
<td>94.41M</td>
<td>84.96M</td>
<td>61.18M</td>
</tr>
</tbody>
</table>
</p>
<p>To track all earnings releases for Ring Energy <a href="https://www.benzinga.com/quote/REI/earnings">visit their earnings calendar here.</a> </p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Ring Energy: Q1 Earnings Insights

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) is set to give its latest quarterly earnings report on Wednesday, 2023-05-03. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Ring Energy will report an <strong>earnings per share</strong> (EPS) of $0.12. </p>
<p>Ring Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Past Earnings Performance</h3>
<p>Last quarter the company missed EPS by $0.03, which was followed by a 1.51% drop in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q4 2022</strong></th>
<th><strong>Q3 2022</strong></th>
<th><strong>Q2 2022</strong></th>
<th><strong>Q1 2022</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.16</td>
<td>0.24</td>
<td>0.23</td>
<td>0.19</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.13</td>
<td>0.28</td>
<td>0.29</td>
<td>0.22</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>-1.51%</td>
<td>10.03%</td>
<td>9.48%</td>
<td>-3.2%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2023/1683043308_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Ring Energy were trading at $1.83 as of May 01. Over the last 52-week period, shares are down 65.48%.  Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/REI/earnings"><strong>To track all earnings releases for Ring Energy visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


A Preview Of Ring Energy's Earnings

<p><strong>Ring Energy</strong> (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/REI#AMEX">REI</a>) is set to give its latest quarterly earnings report on Thursday, 2023-03-09. Here's what investors need to know before the announcement.</p>
<p>Analysts estimate that Ring Energy will report an <strong>earnings per share</strong> (EPS) of $0.22. </p>
<p>Ring Energy bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.</p>
<p>New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).</p>
<h3>Historical Earnings Performance</h3>
<p>Last quarter the company beat EPS by $0.04, which was followed by a 10.03% increase in the share price the next day.</p>
<p>Here's a look at Ring Energy's past performance and the resulting price change:</p>
<p>
<table>
<thead>
<tr>
<th><strong>Quarter</strong></th>
<th><strong>Q3 2022</strong></th>
<th><strong>Q2 2022</strong></th>
<th><strong>Q1 2022</strong></th>
<th><strong>Q4 2021</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>EPS Estimate</strong></td>
<td>0.24</td>
<td>0.23</td>
<td>0.19</td>
<td>0.07</td>
</tr>
<tr>
<td><strong>EPS Actual</strong></td>
<td>0.28</td>
<td>0.29</td>
<td>0.22</td>
<td>0.10</td>
</tr>
<tr>
<td><strong>Price Change %</strong></td>
<td>10.03%</td>
<td>9.48%</td>
<td>-3.2%</td>
<td>9.32%</td>
</tr>
</tbody>
</table>
</p>
<p><img src="https://www.benzinga.com/files/images/story/2023/1678294865_0.png" alt="eps graph" /></p>
<h3>Stock Performance</h3>
<p>Shares of Ring Energy were trading at $2.11 as of March 07. Over the last 52-week period, shares are down 43.91%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release. </p>
<p><a href="https://www.benzinga.com/quote/REI/earnings"><strong>To track all earnings releases for Ring Energy visit their earnings calendar on our site.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and reviewed by an editor.</em></p>


<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Finding opportunities that offer sizable returns is crucial in the always-changing world of investing. Micro-cap companies stick out among the wide range of alternatives as they frequently conceal unrealized potential and growth prospects. These three undiscovered beauties are businesses ranging from aerospace to energy. They each operate in different industries and have different opportunities for investors to consider.</p>



<p>The first one&rsquo;s creative moves in the aerospace sector, along with a healthy order book, point to quick development and significant revenue growth. The second one makes a strong argument for investment in the energy industry because of its remarkable production growth and reserve rise, which indicate operational competence. The third, in the meantime, has demonstrated its promise in efficiency-driven investments with record-breaking levels of adjusted EBITDA and lower expenses due to its unrelenting focus on operational efficiency.</p>



<p>These firms are more than simply enterprises. They are opportunities in industries with tremendous room for growth to profit from new trends and diversify their investment holdings. There is potential to make significant gains by releasing the latent value in these micro-cap stocks.</p>



<h2>Archer Aviation (ACHR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/achr1600-2-300x169.png" alt="Person holding cellphone with logo of American eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen in front of webpage. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p>The company&rsquo;s commercialization plan and indicative order book demonstrate strong market demand and significant revenue potential for <strong>Archer Aviation&rsquo;s</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/achr-stock-quote/"><strong>ACHR</strong></a></span>) eVTOL aircraft. With a&nbsp;<a href="https://investors.archer.com/news/news-details/2024/Archer-Announces-Fourth-Quarter-and-Full-Year-2023-Results-Now-In-Final-Phase-of-Midnights-Certification-Program-as-it-Readies-for-Launch-in-2025/" target="_blank">strong order book</a>&nbsp;and a hybrid strategy for commercialization, Archer Aviation is well-positioned to expand its revenue quickly and gain market share.</p>



<p>Additionally, direct sales to operators and running a direct-to-consumer aerial ride-sharing service are components of Archer Aviation&rsquo;s&nbsp;<a href="https://investors.archer.com/files/doc_financials/2023/q4/ACHR-Q42023-Earnings-Call-Transcript.pdf" target="_blank">hybrid business strategy.</a>&nbsp;By focusing on commercial operators and end users, this hybrid approach increases market penetration and diversifies income sources. Thus, Archer Aviation strengthens its position in key markets like the Emirates through strategic collaborations with partners such as Air Chateau and Falcon Aviation.</p>



<p>According to Archer Aviation&rsquo;s indicative order book,&nbsp;up to 700 aircraft&nbsp;might be delivered after certification. With an approximate $5 million average selling price per aircraft, the indicative order book indicates a $3.5 billion potential income potential. The full order book demonstrates strong market demand for Archer Aviation&rsquo;s eVTOL aircraft, supporting the company&rsquo;s commercialization plan.</p>



<p>Overall, Archer has identified promising markets in the Emirates, especially Abu Dhabi and Dubai, for Midnight. Hence, relationships with top Emirates airlines show early commercialization opportunities and validity in the market.</p>



<h2>Gran Tierra (GTE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/08/oil1600-300x169.png" alt="In the field, the oil pump in the evening, the evening silhouette of the pumping unit, the silhouette of the oil pump. Oil stocks and energy stocks"><div>Source: zhengzaishuru / Shutterstock.com</div></div><p><strong>Gran Tierra</strong> (NYSEAMERICAN:<span><a href="https://investorplace.com/stock-quotes/gte-stock-quote/"><strong>GTE</strong></a></span>) produced&nbsp;<a href="https://www.grantierra.com/news/gran-tierra-energy-inc-announces-2023-fourth-quarter-year-end-results-including-successfully-meeting-2023-guidance-for-annual-production-funds-flow-from-operations%c2%b9-and-free-cash-flow/" target="_blank">32,647 barrels</a>&nbsp;of oil per day (BOPD) on average in 2023, an increase of 6% over the previous year. This expansion in production reflects the company&rsquo;s capacity to increase its asset base and achieve operational excellence effectively.</p>



<p>Additionally, the business said its overall company reserves had grown for the sixth year, with notable gains in its 1P, 2P, and 3P reserves. Gran Tierra demonstrated its capacity to replace produced reserves and maintain long-term production growth by having reserve replacement rates far&nbsp;<a href="https://seekingalpha.com/article/4671702-gran-tierra-energy-inc-gte-q4-2023-earnings-call-transcript" target="_blank">above 100%</a>.</p>



<p>Furthermore, Gran Tierra has demonstrated its ability to develop its resource base, as seen by the greatest year-end reserves in the company&rsquo;s history:&nbsp;90 million&nbsp;barrels of oil equivalent (MMBOE) 1P, 147 MMBOE 2P, and 207 MMBOE 3P reserves. These reserves offer a solid base for increasing production and adding value in the future.</p>



<p>Finally, Gran Tierra targets high-impact possibilities in already demonstrated basins, allocating a substantial percentage of its capital to exploratory efforts. The organization intends to drill six to nine exploratory wells in Ecuador and Colombia to find new deposits and promote steady production growth.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/03/oil-gas-stocks-300x169.jpg" alt="Image of an oil filed at the Permian Basin."><div>Source: FreezeFrames / Shutterstock.com</div></div><p><strong>Ring Energy</strong> (NYSEAMERICAN:<span><a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a></span>) had a&nbsp;<a href="https://d1io3yog0oux5.cloudfront.net/_9ccd9a5ecf880bbe178b12ba6d593730/ringenergy/news/2024-03-07_Ring_Energy_Announces_Record_Fourth_Quarter_and_210.pdf" target="_blank">6% decrease</a>&nbsp;in cash operating expenses in 2023. However, a 4% decrease (in Q4) from Q3 all-in cash operating costs on a Boe basis. Record-breaking Q4, $65.4 million in adjusted EBITDA, up 12% from Q3. Similarly, a 6% consecutive reduction in lease operating expenditures (LOE) per barrel of oil equivalent was achieved in Q4.&nbsp;</p>



<p>Additionally, Ring Energy can lower its cash operating expenses and improve its cost structure. Meanwhile, attaining record levels of adjusted EBITDA indicates the company&rsquo;s focus on operational efficiency. Compared to Q3, total sales volumes in&nbsp;<a href="https://seekingalpha.com/article/4677095-ring-energy-inc-rei-q4-2023-earnings-call-transcript" target="_blank">Q4 rose by 11%</a>&nbsp;to a record 19,397 barrels of oil equivalent per day (Boe/d). </p>



<p>Moreover, oil sales volumes increased by 13% in Q4 compared to Q3, reaching a record 13,637 Bo/d. Total sales volumes increased by 47% year over year to a record 18,119 Boe/d. Similarly, oil sales for the entire year rose&nbsp;32% to a record 12,548 Bo/d&nbsp;in 2022.&nbsp;</p>



<p>Overall, Ring Energy consistently increases sales volumes, especially in the oil industry. Hence, this reflects its operational effectiveness and well-executed drilling and development initiatives.</p>



<p><em>On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.</em><span><a href="https://investorplace.com/stock-quotes/-stock-quote/"></a></span></p>
<div><p>Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-micro-cap-gems-ready-to-explode-1000-by-2029/">3 Micro-Cap Gems Ready to Explode 1,000% by 2029</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

3 Micro-Cap Gems Ready to Explode 1,000% by 2029

Ring Energy: Reviewing Its Outlook For 2024

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>For small investors, low-price stocks are a good option to create a diversified portfolio. Of course, most of these stocks represent emerging companies and overall portfolio exposure should be limited. However, if these stocks fire, multibagger returns are delivered in quick time. The focus of this column is on seven under-$10 stocks to buy for 5-bagger returns.</p>



<p>An important point to note is that emerging companies have stocks with a relatively high-beta. However, it does not imply that fundamentals are weak. I have screened ideas that represent companies with strong fundamentals or quality assets.</p>



<p>The under-$10 stocks are therefore not speculative and worth holding for the next few years. Further, five years is a relatively conservative time horizon. If the catalysts play-out well, the target returns are likely sooner.</p>



<p>Let&rsquo;s discuss the specific business factors that make these ideas attractive.</p>



<h2>Kinross Gold (KGC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/09/costco-gold-bars1600-300x169.png" alt="Gold bars and Financial concept, studio shots. Costco's gold bars, cost stock"><div>Source: Misunseo / Shutterstock.com</div></div><p>With gold trading at $2,230 an ounce, I am bullish on gold miners surging higher. <strong>Kinross Gold</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/kgc-stock-quote/"><strong>KGC</strong></a></span>) is a quality name to consider for multibagger returns. KGC stock trades at an attractive forward price-earnings ratio of 18.4 and offers a dividend yield of 1.96%. Besides capital gains, I expect robust growth in dividends in the coming years.</p>



<p>An important point to note is that multiple rate cuts might be due in the next 12 to 18 months. Gold is likely to remain in an uptrend and Kinross will benefit on the back of higher realized gold prices.</p>



<p>Specific to the Company, an investment grade balance sheet will allow for aggressive investments. As of Q4 2023, Kinross reported a <a href="https://www.kinross.com/news-and-investors/news-releases/press-release-details/2024/Kinross-reports-2023-fourth-quarter-and-full-year-results/default.aspx">liquidity buffer of $1.9 billion</a>. Further, the operating cash flow for 2023 was $1.7 billion. With gold trending higher, it&rsquo;s likely that OCF will be more than $2 billion. This adds to the flexibility for capital investments and healthy dividend growth.</p>



<p>I am also of the view that Kinross is likely to pursue acquisitions to <a href="https://s2.q4cdn.com/496390694/files/doc_presentations/2024/03/07/Kinross-Investor-Presentation-March-2024.pdf">boost production growth</a>. That&rsquo;s another potential catalyst for a big rally. This makes it one of those under-$10 stocks to buy for 5-bagger returns.</p>



<h2>Archer Aviation (ACHR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/10/flying_car-300x169.jpg" alt="A city skyline from the point of view of a man driving a flying car; best flying car stocks"><div>Source: Shutterstock</div></div><p><strong>Archer Aviation</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/achr-stock-quote/"><strong>ACHR</strong></a></span>) has seen a strong rally of 84% in the last 12 months. ACHR stock has however been sideways in the last six months. This is a good opportunity to accumulate before the flying car stock takes-off.</p>



<p>The first catalyst for Archer is potential completion of certifications from the U.S. Federal Aviation Authority. This will set stage for commercialization in 2025 and healthy growth. Another catalyst is the completion of eVTOL aircraft manufacturing capacity this year.</p>



<p>The production from the facility is expected at 650 aircraft per year and will support servicing of a swelling order book. As of December 2023, Archer <a href="https://investors.archer.com/files/doc_financials/2023/q4/Shareholder-Letter-Q423-FINAL.pdf">reported an order book</a> of $3.5 billion from the Untied States, UAE, and India.</p>



<p>I also believe that Archer is likely to make inroads into additional markets in the coming quarters. This will support the order book and position Archer for stellar growth in the next five years. Overall, as an early-mover in the flying car industry, Archer is positioned to create massive value.</p>



<h2>Canopy Growth Corporation (CGC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/cannabis-stocks1600-1-300x169.png" alt="Business cannabis leaves marijuana stock exchange market or trading analysis investment indicator graph charts. The concept of a company or stock market of marijuana exports for medical use. Cannabis stocks"><div>Source: C.Aphirak / Shutterstock.com</div></div><p>In my view, multiple <a href="https://investorplace.com/industries/healthcare/cannabis/">cannabis stocks</a> are likely to deliver 5x or 10x returns in the next five years. Of course, the key assumption is the regulatory headwinds wane in the United States and Europe. The recent legalization of cannabis in Germany is big news for the industry.</p>



<p>Further, I am expecting the rescheduling of cannabis from Schedule I to Schedule III drug in the U.S. With elections round the corner, there are renewed hopes on federal level legalization.</p>



<p>An important point to note is that <strong>Canopy Growth</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/cgc-stock-quote/"><strong>CGC</strong></a></span>) is <a href="https://www.canopygrowth.com/investors/news-releases/canopy-growth-celebrates-passage-of-cannabis-legalization-in-germany/">among the top three players</a> in the German cannabis industry. The recognition of cannabis as non-narcotic in Germany is likely to help the Company accelerate growth significantly. This is a key growth catalyst for the next few years. With all things considered, it&rsquo;s one of those under-$10 stocks to buy for 5-bagger returns.</p>



<p>Another key stock upside catalyst is that the management expects to <a href="https://www.canopygrowth.com/investors/news-releases/canopy-growth-reports-third-quarter-fiscal-year-2024-financial-results-achieves-third-quarter-of-sequential-revenue-growth-across-canada-cannabis-businesses-and-a-record-quarter-for-medical-sales/">achieve positive Adjusted EBITDA</a> in each business unit exiting financial year 2024. With healthy growth, EBITDA margin expansion seems likely in the next few years.</p>



<h2>Lithium Americas (LAC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/lithium-1600-300x169.png" alt="Lithium element on the periodic table. Top-rated lithium stocks"><div>Source: tunasalmon / Shutterstock</div></div><p><strong>Lithium Americas</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/lac-stock-quote/"><strong>LAC</strong></a></span>) stock remains deeply undervalued even after a rally of 26% in the last one month. Once lithium reverses and trends higher, LAC stock is likely to skyrocket considering the asset potential.</p>



<p>As an overview, Lithium Americas is the owner of the Thacker Pass asset in the United States. The asset has the largest known lithium resource in the country. It&rsquo;s estimated that Thacker Pass has a mine life of 40 years and an <a href="https://lithiumamericas.com/files/doc_presentation/2024/03/LAC-Corporate-Presentation.pdf">after-tax net present value</a> of $5.7 billion.</p>



<p>Recently, the Company received commitment from the U.S. Department of Energy for a <a href="https://lithiumamericas.com/news/news-details/2024/Lithium-Americas-Receives-Conditional-Commitment-for-2.26-Billion-ATVM-Loan-from-the-U.S.-DOE-for-Construction-of-Thacker-Pass/default.aspx">loan of $2.26 billion</a> for project development. Lithium Americas has also received $650 million from General Motors (NYSE:<a href="https://investorplace.com/stock-quotes/gm-stock-quote/"><strong>GM</strong></a>) in two tranches. With commercialization in 2027, the asset promises to be a cash flow machine. During phase one, the asset is likely to deliver an average annual EBITDA of $1.1 billion.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/oil-stocks1600-2-300x169.png" alt="3D rendered two black oil barrels on digital financial chart screen with yellow numbers and rising, green, falling, red arrows on black background. Oil stocks"><div>Source: stockwars / Shutterstock.com</div></div><p>Oil seems to be staging a comeback with multiple factors that are likely to support the rally. This includes potential rate cuts, geopolitical tensions, and production cut by the OPEC and allies. <strong>Ring Energy</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a></span>) is a massively undervalued oil stock with potential to breakout on the upside. It&rsquo;s worth noting that REI stock has been sideways in the last 12 months.</p>



<p>Starting with the asset potential, Ring Energy commands a market valuation of $392 million. In comparison, <a href="https://d1io3yog0oux5.cloudfront.net/_9ccd9a5ecf880bbe178b12ba6d593730/ringenergy/db/880/7737/presentation/Ring+Energy+Q4+2023+Earnings+Corporate+Presentation+FINAL+3-7-24.pdf">the PV10</a> (present value of estimated future oil and gas revenues, net of forecasted expenses) of assets is $1.65 billion. Clearly, in a bull market, there will be ample scope for upside in REI stock.</p>



<p>Another important point to note is that since 2018, the Company has reported production growth at a CAGR of 26%. This growth has been supported by acquisitions. As oil trends higher, production growth coupled with higher realized price would imply robust free cash flows. This would provide flexibility for exploration and acquisition. All in all, it&rsquo;s one of those under-$10 stocks to buy for 5-bagger returns.</p>



<h2>Nio (NIO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/05/red-electric-vehicle-charging-ev-stocks-closeup-1600-300x169.jpg" alt="Closeup photo of red electric vehicle being charged with blue and black charger plugged into charging port. undervalued EV stocks. Top-Rated EV Charging stocks"><div>Source: shutterstock.com/Dmytro_Yushchenko</div></div><p>In February 2021, <strong>Nio</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/nio-stock-quote/"><strong>NIO</strong></a></span>) stock traded above $60. After a massive correction, NIO stock trades below $5. In my view, the stock is a steal at current levels and can deliver multibagger returns in the next few years.</p>



<p>Intense EV competition, macroeconomic headwinds, dilution, and margin compression, are some factors that have impacted Nio. Having said that, Chinese EV market is positioned for long term growth and the current depression is a buying opportunity.</p>



<p>For 2023, Nio reported revenue of $6.9 billion, which was higher by 8.2% on a year-on-year basis. However, <a href="https://ir.nio.com/news-releases/news-release-details/nio-inc-reports-unaudited-fourth-quarter-and-full-year-2023">vehicle margin declined</a> by 420 basis points to 9.5% Further, Nio reported operating loss of $3.1 billion.</p>



<p>It&rsquo;s worth noting that in December 2023, the Company received investment of $2.2 billion from CYVN Investments RSC. This provides liquidity buffer for operations. With Nio focusing on optimizing cost, it&rsquo;s likely that margins will improve this year.</p>



<p>Another positive is that Nio plans to <a href="https://ir.nio.com/news-releases/news-release-details/nio-inc-provides-march-and-first-quarter-2024-delivery-update">commence deliveries</a> of ES7, ET7 and ET5 in Q2 2024. This is likely to have a positive impact on deliveries growth in the coming quarters. The launch of existing models with enhanced configuration and performance is also likely to increase market competitiveness.</p>



<h2>Nordic American Tankers (NAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/12/oil-shipping1600-300x169.png" alt="Crude oil tanker and LPG Loading in port at sea view from above. Aerial view oil tanker ship shot from drone. Oil prices, oil shipping, oil stocks."><div>Source: Avigator Fortuner / Shutterstock.com</div></div><p><strong>Nordic American Tankers</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/nat-stock-quote/"><strong>NAT</strong></a></span>) is a tanker company with a current fleet of 19 Suezmax crude oil tanker. At a forward price-earnings ratio of 6.8, NAT stock looks deeply undervalued. Further, the stock offers a generous dividend yield of 12%.</p>



<p>In my view, the time charter equivalent rate for Suezmax tankers is likely to remain firm in the coming years. This is a key reason to be bullish on Nordic American. Factors that are likely to support healthy TCE rates include geopolitical tensions and a <a href="https://www.lloydslist.com/LL1144076/Tanker-newbuilds-boost-record-low-orderbook">relatively low</a> Suezmax tanker orderbook.</p>



<p>For Q4 2023, Nordic reported <a href="https://ml-eu.globenewswire.com/Resource/Download/648c65ac-52cd-4cc0-a68a-e7ab44d7fd9e">average time charter equivalent rate</a> of $39,170 per day per ship. For the same period, the operating cost per day per ship was $9,000. Clearly, if TCE rates remain around these levels, Nordic will be positioned to continue robust dividends and focus on deleveraging.</p>



<p>It&rsquo;s worth noting that the Company&rsquo;s net-debt per ship is low at $11.6 million. If the industry outlook remains positive, Nordic is also positioned for potential tanker acquisition. This will support revenue and cash flow upside.</p>



<p><em>On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines.</em></a></p>
<div><p>Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/7-under-10-stocks-to-buy-for-5-bagger-returns-in-5-years/">7 Under-$10 Stocks to Buy for 5-Bagger Returns in 5 Years</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 Under-$10 Stocks to Buy for 5-Bagger Returns in 5 Years

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>In my view, it&rsquo;s the best time to grab undervalued <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a> for multibagger returns.</p>



<p>The first reason for this view is the point that rate cuts are impending in the second half of 2024. Easy money policies translate into higher interest (and speculation) in growth and penny stocks. I therefore expect the markets to be supportive in the coming quarters.</p>



<p>The second reason is focus on most undervalued penny stocks to buy in April that these companies have potential catalysts. If these catalysts pay-out in the coming quarters, these emerging companies will grow at a stellar pace and create value.</p>



<p>I must add that the initial horizon for these undervalued penny stocks is until the end of 2024. However, as these stories develop, the investment horizon can be expanded for 5x to 10x returns.</p>



<p>Let&rsquo;s talk about the factors that make these penny stocks worth considering.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/04/oil-stocks1600-300x169.png" alt="Oil. 3D Illustration. Oil stocks are up."><div>Source: Pavel Ignatov / Shutterstock.com</div></div><p>With oil trending higher, <strong>Ring Energy</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a></span>) is among the most undervalued penny stocks to buy in April. There are multiple reasons to be bullish on oil for the coming quarters. First, rate cuts are impending and that&rsquo;s likely to boost industrial commodity and energy prices.</p>



<p>Further, OPEC and allies have maintained their stance on production cut. Escalating geopolitical tensions are also likely to support oil on the upside. It&rsquo;s therefore a good time to accumulate oil and gas stocks.</p>



<p>Ring Energy looks attractive at a current market valuation of $413 million. The PV10 (<a href="https://d1io3yog0oux5.cloudfront.net/_33cd5d87d9ae1f3681b3b7863c021ea9/ringenergy/db/856/7741/pdf/Ring+Energy+2024+Roth+Conference+Investor+Presentation+3-18-24.pdf">present value of future oil revenues</a>, net of direct cost) of Company&rsquo;s assets stands at $1.65 billion. Further, with higher realized oil price, Ring Energy is positioned to deliver EBITDA margin expansion and cash flow upside.</p>



<p>It&rsquo;s also worth noting that the Company has pursued multiple acquisitions in the last few years. This has ensured that production growth remains robust. A combination of higher production and an increase in realized oil price will imply stellar growth.</p>



<h2>Tilray Brands (TLRY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/tlry_tilray_1600-300x169.png" alt="In this photo illustration Tilray (TLRY) logo of a Canadian pharmaceutical and cannabis company is seen on a mobile phone and a computer screen."><div>Source: viewimage / Shutterstock.com</div></div><p>In the last few months, I have talked about <strong>Tilray Brands</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/tlry-stock-quote/"><strong>TLRY</strong></a></span>) in multiple instances. It&rsquo;s worth noting that in the last one month, TLRY stock has skyrocketed by 59%. In my view, the rally from deeply oversold levels is likely to sustain.</p>



<p>With Presidential elections due in November, I expect significant price action in the cannabis industry. It&rsquo;s worth noting that Germany recently legalized cannabis. Further, the U.S. Food and Drug Administration has recommended reclassification of cannabis as a Schedule III drug. It&rsquo;s likely that federal level legalization of cannabis will be a part of the election promise. Therefore, things seen optimistic on the regulatory front and that the reason for TLRY stock trending higher.</p>



<p>At the same time, financial developments have been positive for the Company. In Q2 2024, Tilray <a href="https://ir.tilray.com/news-releases/news-release-details/tilray-brands-delivers-record-q2-fiscal-2024-net-revenue">reported revenue growth of 34%</a> on a year-on-year basis to $194 million. Growth was fuelled by the international medicinal cannabis segment. With Q3 2024 results due next week, I am expecting further upside in the stock backed by strong numbers.</p>



<h2>Bitfarms (BITF)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/12/bitf1600-300x169.png" alt="Bitcoin and crypto mining farm. Big data center. High tech server computers at work. Bitfarms (BITF) mines crypto."><div>Source: PHOTOCREO Michal Bednarek / Shutterstock.com</div></div><p><strong>Bitfarms</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/bitf-stock-quote/"><strong>BITF</strong></a></span>) is among the most attractive <strong>Bitcoin</strong> (<span><a href="https://investorplace.com/cryptocurrency/btc-usd/"><strong>BTC-USD</strong></a></span>) miners to buy. While the crypto currency has surged for year-to-date, BITF stock has declined by 25%. The primary reason for this correction is equity dilution with the Company raising $375 million. With ambitious expansion plans, I believe that BITF stock will make a strong comeback after some consolidation.</p>



<p>At the end of 2023, Bitfarms reported hash rate capacity of 6.5EH/s. The Company is planning to <a href="https://d1io3yog0oux5.cloudfront.net/_2f28bdcc893c3530b329f7c6a21cba20/bitfarms/db/862/8429/pdf/BITF.04.01.24Preso.Final.pdf">increase capacity to 21EH/s</a> by the end of 2024. This will translate into healthy revenue growth. Further, with Bitfarms being a low-cost Bitcoin miner, I expect significant EBITDA margin expansion and cash flow upside.</p>



<p>It&rsquo;s also worth noting that Bitfarms has a zero-debt balance sheet. Therefore, there is ample financial flexibility to plan the next leg of expansion for 2025. If this is associated with new highs for Bitcoin, I expect BITF to deliver multibagger returns in the next 18 months.</p>



<p><em>On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines.</em></a></p>
<div><p>Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/the-3-most-undervalued-penny-stocks-to-buy-in-april-2024/">The 3 Most Undervalued Penny Stocks to Buy in April 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The 3 Most Undervalued Penny Stocks to Buy in April 2024

After lagging in 2023, the energy sector returned to the top of all sector returns in Q1 with a 13.5% return. This was driven by rising oil prices during the quarter. All segments of the energy sector were up, but the refiners were outstanding.

The Best Performing Energy Stocks Of Q1 2024

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>There are thousands of publicly-traded companies whose shares are in &ldquo;penny stock territory&rdquo; (trading for $5 or less per share), but arguably a small fraction of these should be considered <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a> to buy.</p>



<p>For one, a large proportion of penny stocks are low-priced, yet are still &ldquo;expensive,&rdquo; in terms of their trading price relative to underlying value. </p>



<p>Alongside these names, are scores of stocks that, although undervalued on paper, have all the red flags of stocks that end up being  <a href="https://www.investopedia.com/terms/v/valuetrap.asp">&ldquo;value traps&rdquo;</a> for investors.</p>



<p>However, taking into account fundamentals, valuation, and the presence of catalysts, a few names stand out at strong opportunities right now. These include penny stocks trading on major exchanges, as well as penny stocks trading in the over-the-counter market.</p>



<p>If you&rsquo;re looking for penny stocks to buy this month, it better be one of the following seven.</p>



<h2>Farmer Bros (FARM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/09/coffee_1600-300x169.jpg" alt="NUZE Stock. A photo of a cup of coffee and some coffee beans and a towel on a wooden table. Coffee stocks"><div>Source: Evgeny Karandaev/ShutterStock.com</div></div><p>At first, <strong>Farmer Bros</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/farm-stock-quote/"><strong>FARM</strong></a>) may not look like an attractive investment opportunity. </p>



<p>In recent years, the coffee wholesaler and foodservice company has been consistently unprofitable. Over the past five years, FARM has declined by over 84.5%.</p>



<p>However, with FARM stock, focus less on the past five years. Focus more on what may lie ahead in the coming five years. As investment firm <strong>Lake Cornelia Research Management</strong> has argued, Farmer Bros is <a href="https://twitter.com/CorneliaLake/status/1744425302271443344">well-positioned to materially improve its fiscal performance</a>.</p>



<p>In 2023, Farmer Bros made a large asset sale, using the proceeds to de-lever its balance sheet. Through pricing improvements and cost cutting, Lake Cornelia believes that FARM, trading today for around $3.25 per share, could rise to $12 per share within a few years. </p>



<p>While it&rsquo;s far from certain this turnaround will prove fully successful, risk/reward is highly favorable at current prices.</p>



<h2>Flexible Solutions International (FSI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/penny-stocks-fingers-300x169.jpg" alt="Image of a penny held between two fingers with a white indoor background. Dividend-Paying Penny Stocks"><div>Source: Shutterstock</div></div><p><strong>Flexible Solutions International</strong> (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/fsi-stock-quote/"><strong>FSI</strong></a>) is a Canada-based manufacturer of water evaporation control products. Shares have been volatile over the past year, as macro challenges like high inflation and slowing economic growth have affected fiscal performance.</p>



<p>However, based on more recent results, you may want to consider FSI stock one of the top penny stocks to buy once again. </p>



<p>As InvestorPlace Earnings reported last week, FSI&rsquo;s revenue and earnings for the quarter ending Dec. 31, 2023 <a href="https://investorplace.com/earning-results/2024/04/fsi-stock-earnings-flexible-solutions-intl-for-q4-of-2023/">came in ahead of expectations</a>. Alongside better-than-feared results, management also provided <a href="https://flexiblesolutions.com/wp-content/uploads/2024/04/FSI-News-Release-Full-Year-2023-Financial-Results-with-conf-call-26.03.24.docx">upbeat guidance</a> in the earnings press release. </p>



<p>The market is still pricing FSI at a discounted valuation of 6.9 times forward earnings. If results in the coming quarters indicate it will meet or beat these forecasts, this stock could have a tremendous re-rating. Even a move to 10 times forward earnings would mean big price appreciation.</p>



<h2>Innovative Food Holdings (IVFH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/penny-stocks-single-300x169.jpg" alt="A close up photo of a penny. Penny Stocks to Buy"><div>Source: Shutterstock</div></div><p><strong>Innovative Food Holdings</strong> (OTCMKTS:<a href="https://investorplace.com/stock-quotes/ivfh-stock-quote/"><strong>IVFH</strong></a>) is a penny stock winner that could keep on winning. Over the past year, shares in this specialty foods company have rallied by more than 160%, but don&rsquo;t assume that additional upside is limited from here.</p>



<p>As noted previously, <a href="https://investorplace.com/2024/03/7-speculative-penny-stocks-to-watch-for-massive-upside/">IVFH stock is, and continues to be, a turnaround play</a>. Innovative Food Holdings is focusing on maximizing core business profitability. Per the company&rsquo;s latest fiscal results, <a href="https://www.ivfh.com/news-releases/news-release-details/innovative-food-holdings-inc-reports-financial-results-fourth-0">improvements to gross margins and adjusted EBITDA</a> have already started to take shape.</p>



<p>In the years ahead, Innovative could hit consistent GAAP profitability. This, perhaps coupled with a uplisting from the OTC markets to a major stock exchange, may drive another strong move higher for shares. </p>



<p>With this, IVFH remains a strong buy, at just under $1 per share.</p>



<h2>Midwest Energy Emissions (MEEC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/penny-stocks-finding-magnify-300x169.jpg" alt="A hand holding a magnifying glass over pennies. under-$1 stocks to buy"><div>Source: Shutterstock</div></div><p><strong>Midwest Energy Emissions</strong> (OTCMKTS:<a href="https://investorplace.com/stock-quotes/meec-stock-quote/"><strong>MEEC</strong></a>) is another of the penny stocks to buy that looks unattractive on a stock screener, but is a very attractive opportunity when you dive into the details. </p>



<p>Last month, <em>Seeking Alpha</em> commentator 1035 Capital Management <a href="https://seekingalpha.com/article/4680892-midwest-energy-emissions-market-cap-in-cash-numerous-large-growth-opportunities">laid out the bull case</a> for this environmental technology company.</p>



<p>Midwest Energy Emissions recently won a patent infringement lawsuit. The amount awarded by the court, coupled with settlements from related litigation, comes out to around $1 per share. </p>



<p>That&rsquo;s around what MEEC stock trades for right now. That&rsquo;s not all. MEEC plans to use these proceeds to both de-lever the balance sheet, and to grow its business.</p>



<p>Per 1035 Capital Management, if all goes right, MEEC could eventually hit $5 per share. While not guaranteed to happen, weighing this high upside against the margin of safety provided by the judgment award, and risk/reward is clearly skewed in your favor.</p>



<h2>New Gold (NGD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/10/gold_g_1600-300x169.jpg" alt="A photo of a gold nugget on a table, being picked up by tweezers, with more gold behind it. Stocks to Buy in March"><div>Source: aerogondo2 / Shutterstock.com</div></div><p>Spot gold prices have rallied over the past month, but gold mining stocks like <strong>New Gold</strong> (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/ngd-stock-quote/"><strong>NGD</strong></a>) have made outsized moves higher because of this development. </p>



<p>That&rsquo;s not surprising, given the large impact rising gold prices can make on the performance of miners.</p>



<p>Gold miners have a high level of operating leverage. With their production costs largely fixed, the lion&rsquo;s share of incremental increases to prices fall straight to the bottom line. In the case of NGD stock, this isn&rsquo;t the only catalyst at play. </p>



<p>As InvestorPlace&rsquo;s Matthew Farley pointed out recently, New Gold is also <a href="https://investorplace.com/2024/04/the-7-best-penny-stocks-to-buy-in-april-2024/">increasing production</a> at its flagship Rainy River Mine.</p>



<p>The high end of sell-side earnings forecasts call for New Gold to report earnings of 16 cents per share this year, and 32 cents per share in 2025. Not too shabby, for a stock changing hands for under $2 per share today.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/oil1600h-300x169.jpg" alt="miniature oil barrel and oil well figures on top of stack of money"><div>Source: Shutterstock</div></div><p>Gold isn&rsquo;t the only commodity spiking higher. Crude oil prices are climbing as well, making <strong>Ring Energy</strong> (NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a>) another of the top penny stocks to buy. </p>



<p>Ring Energy is an independent oil and gas exploration and production company.</p>



<p>While it&rsquo;s not out of the ordinary for an oil and gas stock to sport a low multiple, REI stock is arguably trading at too cheap of a forward valuation. </p>



<p>Shares today trade for only 4.6 times forward earnings. Many comparable names trade at forward multiples in the mid-to-high single-digit range.</p>



<p>Besides the prospect of continued strong profitability, Ring is pursuing multiple ways to maximize shareholder value. </p>



<p>As laid out in its latest <a href="https://d1io3yog0oux5.cloudfront.net/_f9756be854968d542bf6ffe6f534287f/ringenergy/db/856/7741/pdf/Ring+Energy+2024+Roth+Conference+Investor+Presentation+3-18-24.pdf">investor presentation</a>, the company is making accretive acquisitions, and paying down. Down the road, as results and the balance sheet further improve, Ring Energy aims to begin returning capital via dividends and buybacks.</p>



<h2>Yatra Online (YTRA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/penny-stocks-man-figurine-300x169.jpg" alt="penny stocks. Penny Stocks with Potential"><div>Source: Shutterstock</div></div><p>Back in December, I broke down the bull case for <strong>Yatra Online</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/ytra-stock-quote/"><strong>YTRA</strong></a>), <a href="https://investorplace.com/2023/12/the-7-best-penny-stocks-to-buy-in-december/">a deep value special situation</a>. Shares have barely budged since then, but the bull case remains. </p>



<p>Yatra has an underlying value far in excess of the market&rsquo;s current valuation of shares.</p>



<p>Yatra&rsquo;s holdings include majority ownership of India-based travel site Yatra Online Limited. <a href="https://www.bseindia.com/stock-share-price/yatra-online-ltd/yatra/543992/">Listed on India&rsquo;s BSE Exchange</a>, YTRA&rsquo;s 65% stake is worth around $183.4 million. This position alone is more than double the current market cap of YTRA stock.</p>



<p>Alongside the value of its equity stake, Yatra is sitting on a total of $60.6 million in cash and short-term investments. Put simply, there is tremendous underlying value that in time could be unlocked with YTRA. </p>



<p>While it may be a while before this value is realized, in the meantime efforts like <a href="https://investors.yatra.com/press-releases/press-release-details/2024/Yatra-Online-Inc.-Provides-Update-on-Share-Buyback-Repurchasing-a-Total-of-1044638-shares/default.aspx">share repurchases</a> may provide upward pressure for the stock.</p>



<p><em>On the date of publication, Thomas Niel held a long position in MEEC. He did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.</em></p>
<div><p>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/if-you-can-only-buy-one-penny-stock-in-april-it-better-be-one-of-these-7-names/">If You Can Only Buy One Penny Stock in April, It Better Be One of These 7 Names</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

If You Can Only Buy One Penny Stock in April, It Better Be One of These 7 Names

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Brent oil price has touched $90, which has caused escalating geopolitical tensions in the Middle East. Of course, it&rsquo;s not the only factor for oil trending higher. OPEC and allies have persisted with production cuts. Additionally, there is a case for rate cuts in the second half of 2024, which is positive for oil and industrial commodities.</p>



<p>Amidst these positive catalysts, there are some attractive oil &amp; gas <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a> to buy for stellar returns quickly. This column discusses three penny stock ideas that can deliver 100% returns before the end of the year.</p>



<p>It&rsquo;s worth noting that the broad oil &amp; gas sector does not only include exploration companies. There are interesting plays in the oil tanker and offshore drilling segment. <strong>Borr Drilling</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/borr-stock-quote/"><strong>BORR</strong></a></span>) and <strong>Transocean </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/rig-stock-quote/"><strong>RIG</strong></a></span>) trade above $5 and are not penny stocks. However, these are among the names to consider for robust returns in the coming quarters.</p>



<p>Let&rsquo;s discuss three penny oil &amp; gas stocks poised for a strong rally.</p>



<h2>Nordic American Tankers (NAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/nat_nordic_american_tankers_1600-300x169.png" alt="On board on a suezmax tanker, NAT operates tankers like this one"><div>Source: Vallehr / Shutterstock.com</div></div><p><strong>Nordic American Tankers </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/nat-stock-quote/"><strong>NAT</strong></a></span>) is among the most undervalued oil &amp; gas penny stocks to buy. NAT stock trades at a forward price-earnings ratio of 6.8 and offers a robust dividend yield of 12.37%.</p>



<p>As an overview, Nordic American is a crude oil tanker company with a current fleet of 19 Suezmax tankers. The company has benefited from healthy time charter rates, but I expect TCS rates to remain robust with high geopolitical tensions.</p>



<p>As of Q4 2023, Nordic reported an average TCE rate of $39,170 per day per ship. The operating cost per day per ship for the same period was $9,000. Therefore, there is clear visibility for healthy EBITDA and robust cash flows at current rates.</p>



<p>It&rsquo;s also worth noting that the company has low leverage and a net debt of $11.6 million per ship. If the market remains strong, Nordic has the flexibility to expand its fleet. Further, healthy cash flows show a strong case for deleveraging and improving credit metrics.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/07/oilgas1600-300x169.png" alt="Production operator communicate between central control room by using radio to operate ball valve at offshore oil and gas processing platform for control gases and liquid crude oil process. Energy Stocks. Bargain energy stocks for June"><div>Source: Oil and Gas Photographer / Shutterstock.com</div></div><p><strong>Ring Energy</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a></span>) stock has witnessed a strong rally of 30% in the last month. The stock, however, continues to trade at a valuation gap, and I expect the rally to be sustained. Ring Energy is involved in exploring, producing and developing oil &amp; gas assets.</p>



<p>The company commands a market valuation of $411 million. The company&rsquo;s proven reserves have a <a href="https://d1io3yog0oux5.cloudfront.net/_f9756be854968d542bf6ffe6f534287f/ringenergy/db/856/7741/pdf/Ring+Energy+2024+Roth+Conference+Investor+Presentation+3-18-24.pdf">present value PV10 of $1.65 billion</a>. This clearly indicates the valuation gap and the upside potential as oil trends rise.</p>



<p>In addition, the company&rsquo;s financial metrics have been improving. For Q4 2023, Ring Energy reported an adjusted free cash flow of $16.3 million. With production growth and higher realized oil prices, adjusted FCF can potentially be $80 to $100 million for 2024.</p>



<p>This will provide flexibility to invest in proven undeveloped reserves. At the same time, Ring Energy has a record of growth through acquisitions. The addition of new assets can boost long-term growth visibility.</p>



<h2>Tullow Oil (TUWOY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/oil1600-300x169.jpg" alt="a bunch of oil barrels are stacked high"><div>Source: Shutterstock</div></div><p><strong>Tullow Oil</strong> (OTCMKTS:<span><a href="https://investorplace.com/stock-quotes/tuwoy-stock-quote/"><strong>TUWOY</strong></a></span>) is a deeply undervalued oil &amp; gas penny stock to buy for multibagger returns. The company has oil &amp; gas exploration activity in Africa. Further, Tullow is focused on West and East Africa resources, where the potential opportunity is for more than 30 billion barrels of oil. &nbsp;The company&rsquo;s net 2P reserves and 2C resources are 900 million barrels of oil equivalent.</p>



<p>From a financial perspective, there are two points to note. First, Tullow reported $250 million in net debt reduction for 2023. Further, the company is on track to deliver $800 million in free cash flows from 2023 to 2025. The company aims to reduce net debt by $700 million by 2025. Credit metrics will, therefore, continue to improve.</p>



<p>This is important as Tullow has 200mmboe in 2P reserves and 700mmboe in 2C resources. Significant exploration expense is likely to boost production in the next few years. The company has ample financial flexibility.</p>



<p><em><strong>On Penny Stocks and Low-Volume Stocks</strong>: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com&rsquo;s writers disclose this fact and warn readers of the risks.</em></p>



<p><em><strong>Read More</strong>: <a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/">Penny Stocks &mdash; How to Profit Without Getting Scammed</a></em></p>



<p><em>On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines</em></a><em>.</em></p>
<div><p>Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-oil-gas-penny-stocks-that-can-double-in-3-quarters/">3 Oil &amp; Gas Penny Stocks That Can Double in 3 Quarters</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

3 Oil & Gas Penny Stocks That Can Double in 3 Quarters

The latest announcement is out from Ring Energy (REI). Clayton E. Woodrum and Roy Ben-Dor, both members of the Ring Energy, Inc. Board of Directors...

Ring Energy Board Members Announce Retirement Plans

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>As we look ahead to the coming year, <a href="https://investorplace.com/stock-types/penny-stocks/">penny stocks</a> may become increasingly popular among investors. With the risk-free rate set to decrease due to lower interest rates, and many analysts predicting a rise in major indices like the <strong>S&amp;P 500 </strong>and <strong>Nasdaq</strong>, the stage could be set for these small-cap investments to flourish. The rate decreases might come a little later than expected, but sooner or later the cracks in the robust U.S. economy will show.</p>



<p>Investors may choose to take positions in penny stock companies as short-term momentum plays or as long-term holds, capitalizing on the current growth-friendly environment. Allocating even a small position could lead to strong risk-adjusted returns, especially in a bull market.</p>



<p>In this article, I&rsquo;ve highlighted three penny stocks that I believe have the potential to soar in the near future. Each of these companies is listed on a major U.S. exchange and has demonstrated growth in their core business fundamentals.</p>



<p>These are the three potential multi-bagger penny stocks for investors to consider.</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/08/oil1600-300x169.png" alt="In the field, the oil pump in the evening, the evening silhouette of the pumping unit, the silhouette of the oil pump. Oil stocks and energy stocks"><div>Source: zhengzaishuru / Shutterstock.com</div></div><p><strong>Ring Energy</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a>), an independent oil and natural gas exploration and production company operating in Texas and New Mexico, is a penny stock that could be poised for significant growth.&nbsp;</p>



<p>Following an <a href="https://finance.yahoo.com/news/ring-energy-inc-rei-posts-215142704.html">impressive fourth quarter</a>, I believe REI has the potential to continue outperforming going forward. The company reported a record adjusted EBITDA of $65.4 million, representing a solid increase from the previous quarter, along with growth in sales volumes.</p>



<p>One of the most attractive aspects of REI is its low valuation on a price-to-sales basis. The stock currently trades at just 1.12 times sales, which drops even further to 1.08 times sales on a forward basis. Additionally, the company appears undervalued when considering its accounting profits.</p>



<p>Unlike many other penny stocks, REI stands out for its positive cash flow generation, having already produced $56.34 million in cash flow within the last 12 months.</p>



<p>At just around $2 per share. REI could be one of those penny stocks that soars in the future.</p>



<h2>Future FinTech Group (FTFT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/cryptos-1600-2-300x169.png" alt="Various cryptocurrency coins. Cryptos. Cryptocurrencies representing 3AC Crypto., ARBK Stock. cheap cryptos to buy on the rebound. Crypto trends. AI Cryptos"><div>Source: Wit Olszewski / Shutterstock</div></div><p><strong>Future FinTech Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/ftft-stock-quote/"><strong>FTFT</strong></a>) operates in the blockchain and fintech sectors, primarily focusing on e-commerce solutions and financial services related to cryptocurrency data.</p>



<p>FTFT is <a href="https://globalbusinessoutlook.com/fintech/future-fintech-announces-new-unit-dubai-crypto-trading/">actively expanding its footprint</a>, revealing plans to open a new cryptocurrency trading and crypto asset management unit in Dubai this year.</p>



<p>Love it or hate it, I think digital currencies such as <strong>Bitcoin</strong> (<a href="https://investorplace.com/cryptocurrency/btc-usd/"><strong>BTC-USD</strong></a>) are here to stay. Companies like FTFT that create the &ldquo;picks and shovels&rdquo; the industry needs to survive will only grow in prominence as more investors buy into crypto.</p>



<p>However, like all companies, FTFT also faces some challenges. <a href="https://simplywall.st/stocks/us/diversified-financials/nasdaq-ftft/future-fintech-group">FTFT reported a loss</a> of 9.7 cents per share in its most recent quarterly results. That marked a decline from the previous year&rsquo;s loss of 7 cents per share in the same quarter.</p>



<p>However, FTFT is a great option for investors wanting a potentially undervalued fintech stock with strong exposure to crypto.</p>



<h2>Transocean (RIG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/rig-1600-300x169.jpg" alt="Transocean logo on a laptop screen. RIG stock."><div>Source: Postmodern Studio / Shutterstock</div></div><p><strong>Transocean</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/rig-stock-quote/"><strong>RIG</strong></a>) specializes in deep-water and ultra-deep-water drilling. It is known for its significant global presence and strong project backlog.</p>



<p>There are a lot of good reasons for investors to feel bullish on RIG. The company <a href="https://finance.yahoo.com/news/4q-struggles-transocean-upcycle-prediction-160000674.html">projects significant growth</a> in its operations in Brazil. The driller plans to increase its rig count to 36 by the end of 2025 with stable demand in the  Gulf of Mexico. Additionally, it expects to initiate 13 new drilling programs over the next 18 months.&nbsp;</p>



<p>Also, financially, RIG <a href="https://www.kavout.com/blog/transocean-nyse-rig-a-bullish-outlook-for-2024/">reported a narrowed net loss</a> in Q4 2023 and forecasts a revenue increase for 2024. For 2023, the revenue reached approximately $2.837 billion, a 10% increase from the previous year. Sales are projected to rise to $3.591 billion in 2024, marking a 27% year-over-year growth.</p>



<p>Analysts also collectively agree that RIG&rsquo;s performance in the short-term could be accretive. The <a href="https://www.marketbeat.com/stocks/NYSE/RIG/">price target</a> averages at $8.22 for the next twelve months. That suggests a potential upside of 45% from the current price.</p>



<p><em>On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> </em>InvestorPlace.com Publishing Guidelines</a>.</p>
<div><p>Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-penny-stocks-that-could-be-multibaggers-in-the-making-april-edition/">3 Penny Stocks That Could Be Multibaggers in the Making: April Edition</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

3 Penny Stocks That Could Be Multibaggers in the Making: April Edition

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Every once in a while, a blind squirrel finds a nut. The same can be said about the best $5 stocks. While I wouldn&rsquo;t recommend putting more than one or two percentage points of your portfolio in $5 stocks, like a blind squirrel, you sometimes can hit paydirt. It&rsquo;s not often, mind you, but all it takes is one to get you hooked for life.&nbsp;</p>



<p>Which are the best $5 stocks to buy now? According to <em>Finviz.com,</em> <a href="https://finviz.com/screener.ashx?v=111&amp;f=idx_rut,sh_price_u5">344 stocks</a> in the <strong>Russell 2000 Index </strong>are trading below $5. Of these, 126 have a market capitalization between $300 million and $2 billion.&nbsp;&nbsp;</p>



<p>Here are three of the best $5 stocks to buy in April that could reach $10 or more in short order.</p>



<h2>Chimera Investment Corp (CIM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/reit-1600-300x169.png" alt="REITs to buy Real estate investment trust REIT on an office desk."><div>Source: Vitalii Vodolazskyi / Shutterstock</div></div><p><strong>Chimera Investment Corp </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/cim-stock-quote/"><strong>CIM</strong></a></span>) is a credit-focused hybrid mortgage real estate investment trust (<span>REIT</span>) that <a href="https://www.chimerareit.com/">invests</a> in residential mortgage loans, agency and non-agency mortgage-backed securities.&nbsp;</p>



<p>In May 2023, <em>Mad Money&rsquo;s </em>Jim Cramer <a href="https://www.cnbc.com/2023/05/23/cramers-lightning-round-get-rid-of-chimera.html">suggested</a> that investors get rid of CIM stock because it had been a &ldquo;terrible stock for a very long time.&rdquo;</p>



<p>As I write this, its shares are down 78% over the past five years, but up 4.5% in the past week. It suffered most of the losses between February 2020 and October 2023.&nbsp;</p>



<p>According to its <a href="https://d1io3yog0oux5.cloudfront.net/_4865f158b89c85688471caf05d3d84bc/chimerareit/db/862/7977/pdf/Q4_2023_Investor_Presentation_Final.pdf">February 2023</a> presentation, it purchased $1.4 billion in residential mortgage loans in 2023. Further, approximately 81% of its residential mortgage loans were originated before 2008, providing lower delinquencies on these loans.&nbsp;</p>



<p>What makes it worth the risk?</p>



<p>The REIT currently pays out a <a href="https://www.chimerareit.com/news-events/press-releases/detail/229/chimera-declares-first-quarter-2024-common-stock-dividends">quarterly dividend</a> of 11 cents. Its annual payment of 44 cents yields a high 10.5%. A lack of capital gains becomes less problematic when you get above-average dividend income.&nbsp;It last traded above $10 in July 2022.&nbsp;</p>



<h2>Ring Energy (REI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/oil-price-predictions1600-300x169.png" alt="Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions"><div>Source: Golden Dayz / Shutterstock.com</div></div><p><strong>Ring Energy </strong>(NYSEAMERICAN:<span><a href="https://investorplace.com/stock-quotes/rei-stock-quote/"><strong>REI</strong></a></span>) is an independent <a href="https://www.ringenergy.com/">oil and natural gas company</a> in Texas&rsquo;s Permian Basin. It has a market capitalization of nearly $400 million.&nbsp;</p>



<p>Its shares are down 61% over the past five years but up more than 36% year-to-date (YTD). As recently as May 2022, they traded around $5.&nbsp;</p>



<p>Founded in 2012, the company acquired <a href="https://www.ringenergy.com/investors/news-events/press-releases/detail/180/ring-energy-announces-agreement-to-acquire-strongholds">66.6 million</a> barrels of oil equivalent (<span>BOE</span>) of reserves in July 2022 from Stronghold Energy II Operating LLC. It paid $200 million in cash upfront, $15 million in cash six months after closing, $20 million for Stronghold&rsquo;s existing hedge liability and $230 million in REI stock.&nbsp;</p>



<p>The acquisition was expected to increase its size and scale, leading to higher free cash flow, higher debt repayments and a stronger balance sheet.&nbsp;As a result of this acquisition, it now has <a href="https://www.ringenergy.com/">130 million</a> BOE of proved reserves, with 63% oil and 37% natural gas.&nbsp;&nbsp;</p>



<p>Thanks to the addition of Stronghold, Ring Energy finished 2023 with $361 million in revenue, up 4% from 2022. Unfortunately, due to a 29% reduction in the BOE price to $54.60 from $76.95 a year earlier, its adjusted net income declined by 7% to $100.5 million.&nbsp;</p>



<p>However, its adjusted free cash flow was $45.3 million, 30% higher than a year earlier. Based on its enterprise value of <a href="https://www.morningstar.com/stocks/xase/rei/valuation">$830 million</a>, its free cash flow yield is 5.4%. Anything between 4% and 8% is fair value.</p>



<h2>OppFi (OPFI)&nbsp;</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/01/personal-saving-rate-vs-credit-card-delinquency-300x169.jpg" alt="Personal saving rate vs. Credit card delinquency"><div>Source: Chart by Josh Enomoto</div></div><p><strong>OppFi </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/opfi-stock-quote/"><strong>OPFI</strong></a></span>) is a Chicago-based provider of a specialty finance platform that facilitates access to credit for the <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001818502/5695cea8-2171-4ccf-b7cf-d9bcac230923.pdf">63 million</a> Americans with few or no other options.</p>



<p>&ldquo;The average installment loan facilitated by OppFi with its OppLoans platform is approximately $1,500, payable in installments and for an average contractual term of 11 months,&rdquo; states page five of its 2023 10-K. The company&rsquo;s 10-K says that 89% of its underwriting decisions in 2023 were automated, ensuring the loan is approved and funds transferred within a day or two.&nbsp;</p>



<p>Over the past month, OPFI shares have gained 21%, although they are still down 39% YTD. Its shares fell by more than 30% in early March due to weak guidance for 2024.&nbsp;</p>



<p>Analysts were expecting 2024 revenues of <a href="https://www.marketwatch.com/story/oppfi-stock-falls-19-on-soft-2024-guidance-d279ce34">$550 million</a>. The company is targeting $520 million at the midpoint of its guidance. On the bottom line, the analyst estimate for 2024 was 59 cents a share, while OppFi is expecting 55 cents.&nbsp;</p>



<p>Persistent inflation will remain a major issue in 2024. As loan recipients fail to repay their loans, the company will incur higher charge-offs.&nbsp;But, at least OppFi is a shareholder-friendly company. On April 9, it announced a <a href="https://s27.q4cdn.com/889956127/files/doc_news/OppFi-Announces-0.12-Per-Share-Special-Dividend-20-Million-Share-Repurchase-Program-2024.pdf">special dividend</a> of 12 cents a share to be payable on May 1. In addition, it announced a new $20 million share repurchase program.&nbsp;</p>



<p>While it&rsquo;s got its work cut out for it in 2024, I love a special dividend.</p>



<p><em>On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"> Publishing Guidelines</a>.</em></p>
<div><p>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</p></div><h3>More From InvestorPlace</h3>
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