In comparison to the other companies in the Paper & Forest Products industry and the overall market, the firm's return on equity significantly exceeds that of the industry average and is above that of the S&P 500. Pope Resources' stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 39.82%, which is also worse than the performance of the S&P 500.
Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper than most other stocks in its industry. But due to other concerns, we think the stock is still not a good buy right now. Pope had been rated a buy since July 21, 2006.
Legacy Reserves (LGCY - Get Report), which engages in the acquisition and development of oil and natural gas properties principally in the Permian Basin and Mid-continent regions of the United States, was initiated with a hold.
Legacy Reserves' strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally poor debt management. Net operating cash flow has significantly increased to $29.26 million when compared with the same quarter last year, growing by 1,161.37%. In addition, the company has also vastly surpassed the industry average cash flow growth rate of 36.17%.When compared with other companies in the oil, gas & consumable fuels industry and the overall market, Legacy Reserves' return on equity significantly trails that of both the industry average and the S&P 500. The firm's debt-to-equity ratio of 0.61 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that LGCY's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.58 is low and demonstrates weak liquidity. Its net income has fallen drastically by 343.5% when compared with the same quarter one year ago, falling to a loss of $21.10 million from a loss of $4.76 million -- significantly underperforming the S&P 500 and the oil, gas & consumable fuels industry. Additional ratings changes from July 24 are listed below.
|Ticker||Company Name||Change||New Rating||Former Rating|
|ABFS||ARKANSAS BEST CORP||Upgrade||Buy||Hold|
|AMIN||AMERICAN INTERNATIONAL INDS||Downgrade||Sell||Hold|
|ATB||ARLINGTON TANKERS LTD||Upgrade||Buy||Hold|
|CLRO||CLEARONE COMMUNICATIONS INC||Downgrade||Hold||Buy|
|COCO||CORINTHIAN COLLEGES INC||Upgrade||Buy||Hold|
|CPII||CPI INTERNATIONAL INC||Upgrade||Hold||Sell|
|HELE||HELEN OF TROY LTD||Upgrade||Buy||Hold|
|KYCN||KEYSTONE CONS INDUSTRIES INC||Upgrade||Hold||Sell|
|LGCY||LEGACY RESERVES LP||Initiated||Hold|
|MRH||MONTPELIER RE HOLDINGS||Upgrade||Hold||Sell|
|NYB||NEW YORK CMNTY BANCORP INC||Downgrade||Hold||Buy|
|POPE||POPE RESOURCES/DE -LP||Downgrade||Hold||Buy|
|TYC||TYCO INTERNATIONAL LTD||Downgrade||Sell||Hold|
|WIRE||ENCORE WIRE CORP||Downgrade||Hold||Buy|