Corporate Webpages Harvest Natural Resources, Inc.
Back in the early days of Zenith's trading in the 1960's, there
came a headline in the Wall Street Journal reading, "Robbing the
Gringo Again!" It referred to the Mexican Government's
nationalization of Pan American Sulphur Co. assets in that
country. "Nationalization" is another word for theft, stealing,
corruption, greed, and just plain lack of any morals. Mexico
hasn't gotten much better since then, as witness what happened
to American retirees who bought retirement homes within 50 miles
of the Mexican coast line within the last few years. These
homes were also "nationalized," appropriated, and stolen from
them. Still many American corporation persist in setting up
manufacturing facilities in Mexico, companies like Chrysler,
taking the chance and often reaping handsome profits off of
low-cost labor.
It gets worse as you go deeper south of the border until we
arrive at that hapless country of Venezuela, whose fat, bloated,
dirty slob of a dictator got up in front the United Nations and
called the American President "The Devil incarnate." It was
actually Hugo Chavez who was the Devil incarnate, a greedy slimy
excuse for a man who grabbed whatever his hands could get,
depriving his own people by force and making himself President
for Life. Simon Bolivar he was NOT! In fact he undid much of
the work of Bolivar. And yet, right up through 2003, American
oil companies persisted in believing they could do business with
this creep. The potential profits were so huge, they ignored
common sense, but were slowly "nationalized" by greedy Chavez in
various schemes of retro-active taxation, broken contracts and
agreements, and forced partnership with the State oil company
which grabbed off huge shares of the profits. So
Conoco-Phillips, Shell Oil, and the biggies in the oil and gas
exploration companies pulled out rapidly and abandoned whatever
assets they had in Venezuela, leaving it to Chavez to finance
his own natural resource development. However, Benton Oil,
later to become Harvest Natural Resources (HNR), preferred to
think even to this day that it could somehow do business with
the Devil himself. They paid the taxes, and actually believed
they could fight injustices in the Venezuelan courts. This
insanity cost HNR dearly and further lined the pockets of Chavez.
He could care less whether HNR survived or not.
Some companies like ARCO and Citgo still do business with
Venezuela, but only by buying oil produced by Venezuelans. They
are not so foolish as to carry on oil and gas explorations in
that country and risk having all their assets seized at the whim
of a tyrant.
Now this "intro" is much longer than our usual ones, because
this is a fascinating company. At first glance, you would
conclude it is an absolute disaster of mismangement and would
make the ideal short sale. Researchers, who are usually late to
the party, point out that the fundamentals of this company are
so bad that, "The company may have difficulty making interest
payments. Its Interest Coverage Ratio is among the highest in
the industry but shows that earnings from day-to-day activities
are too small to service the debt." (See Financial Ratios Section).
Market Grader says, "Company's business shows a steep
contraction taht will probably require drastic corrective measures."
Some of these "measures" include things like selling off its
prime U.S.-located oil field assets while hanging on to toxic
positions in places like Venezuela.
The company has a terrible Zenith Index rating, and gets very
low marks from several other sources of both fundamental and
technical review listed in our article. To say that this
company is extremely-speculative would be an understatement.
The oil and gas exploration industry is one of the most
competitive of all with over 100 listed companies competing
around the world. It is also one of the strongest performing
industry groups, however. Accounting includes extraordinary
charges and income and is hard to gage. Cash flow is negative.
Some financial ratios being reported are suspect, i.e. "no debt"
versus lots of debt, depending upon what source you rely upon.
Our conclusion in our Decision Matrix is that this stock is a
strong "sell." But before you run out to short this stock,
there are a few things to warn you that its fortunes may be
headed the other way. Our first indication of this is that
Dimensional Fund Advisors, which we regard as the strongest
institutional investment manager out there, is THE major holder
of stock in this company. They are followed closely by George
Soros, who doesn't hestitate to take on international risks. If
that isn't enough to make us very wary, institutions in general
of late are clamoring for this stock. It has the highest rating
among several analysts. It has a very much larger projected
income on the horizon according to these analysts. It's chart
pattern exhibits a trading range or "channel" which we like to
rely upon for predictability, and is currently trading at the
low end of that channel, making it identifiable as a "rolling
stock" buy. It's management and corporate governance are very
highly rated in terms of reasonable executive compensation, good
financial reporting, and absence of poison pills or so-called
"shareholder rights" provisions making it a potential takeover target.
It has rapidly diversified to other "hot spots" around the
world, like off the coast of the Congo, where its Gabon
interests are being touted recently. All of these
considerations should make you very wary before you jump in and
short the stock.
08-18-2011: Harvest Natural Resources, Inc. (HNR): Bargaining With the Devil
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Harvest Natural Resources Inc. (HNR ) Sector: Basic Materials
1177 Enclave Parkway Industry: Independent Oil & Gas
Suite 300 Exchange: NYSE
Houston, TX 77077
Harvest Natural Resources, Inc., an independent energy company, engages in
the acquisition, exploration, development, production, and disposition of
oil and natural gas properties. It holds interests in the Bolivarian
Republic of Venezuela, exploration acreage in the Gulf Coast Region of the
United States, Antelope prospect in the western United States, and
exploration acreage mainly onshore West Sulawesi in the Republic of
Indonesia, offshore of the Republic of Gabon, onshore in Oman, and
offshore of the People-Ęs Republic of China. Harvest Natural Resources,
through its minority equity investment in Fusion Geophysical, LLC,
provides geophysical, geosciences, and reservoir engineering support
services. The company was founded in 1988 and is headquartered in Houston,
Texas.
Last Trade: 9.97 52-Week Range: 17.46 - 6.45
Trade Date: 08-16 Avg. Volume: 794,558 Shares
Index Membership: Employees: 58
Corporate Governance:
Board (Low Risk), Audit (Low Risk), Compensation
(Medium Risk), Shareholder Rights (Low Risk).
EPS: 2.22 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 340,230K
Payout Ratio: 0.00%
Last Split Factor (new for old): 2:1 Split Date: Feb 27, 19
Key Statistics:
Enterprise Value: $ 268,620K Revenue (ttm) : $ 10,700K
Gross Profit: $ 8,850K
Earnings before Income Tax, Depreciation and Amortization: $ -31,930K
Enterprise Value/Revenue (ttm): 25.11 Revenue per Share: $ 0.32
Enterprise Value/EBITDA (ttm): -8.41 Qtrly Rev Growth (y to y): 0.00%
P/E Ratio (fwd projected): 7.02 P/E Ratio (current): 4.49
P/E Growth Ratio (5 yr expected): 0.27 Operating Margin: %-326.97%
Price/Sales Ratio: 34.84 Profit Margin: 765.39%
Price/Book Value: 0.93 Book Value: $ 11.77/sh.
Return on Assets: -4.58% Net Income Avl to Common: $ -11,260K
Return on Equity: -0.16% Diluted Earnings/Share: $ 2.22
Qrtly Earnings Growth (yoy): 0.00%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 136,030K Operating Cash Flow:$ -15,060K
Total Debt: $ 32,000K Lvgd Free Cash Flow:$ -96,710K
Total Debt/Equity: 6.74
Total Cash/Share: $ 3.99
Current Ratio: 4.71
Share Statistics: Stock Price History:
Shares Outstanding: 34,120K Stk 52-Week Change: 35.46%
Float: 26,590K S&P 500 52-Wk Chng: 9.17%
Sh. Short % of Float: 26.50% 50-Day Moving Avg: 11.72
Short Ratio: 12.60 200-Day Moving Avg: 12.81
% Held by Institutions: 59.40% Beta: 2.14
% Held by Insiders: 15.96%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.20 0.25 0.55 1.42
Average Revenue Estimate 0M 0M 0M 0M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 137.000 EPS Growth (Qrtly YoY): 0.000
PEG Ratio (ttm, 5 yr expected): %1969.806 P/E Ratio (ttm): 0.000
Revenue Growth (Qrtly YoY): 0.000
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 10,696 181 0
Cost of Revenue 1,846 0 27,230
Gross Profit 8,850 181 -27,230
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 27,708 22,880 27,009
Non-Recurring Expenses 8,016 7,824 0
Other Operating Expenses 3,817 436 201
Total Operating Expenses 0 0 0
Operating Income or Loss -30,691 -30,959 -54,440
Income from Continuing Operations:
Total Other Income/Expenses Net -4,983 1,085 7,084
Earnings Before Interest & Taxes -35,674 -29,874 -47,356
Interest Expense 2,689 5 1,730
Income Before Taxes -38,363 -29,879 -49,086
Income Tax Expense -184 1,182 25
Minority Interest -12,645 -7,803 -6,929
Net Income from Continuing Op.s 15,340 -3,107 -21,464
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 15,340 -3,107 -21,464
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 15,340 -3,107 -21,464
Quarterly Income Statements: All numbers in thousands)
Period Ending Mar31,2011 Dec31,2010 Sep30,2010 Jun30,2010
Total Revenue 0 2,739 1,919 6,038
Cost of Revenue 0 675 494 677
Gross Profit 0 2,064 1,425 5,361
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 7,056 8,152 7,251 6,688
Non-Recurring Expenses 1,189 2,687 2,592 1,491
Other Operating Expenses 124 1,251 741 1,724
Total Operating Expenses 0 0 0 0
Operating Income or Loss -8,369 -10,026 -9,159 -4,542
Income from Continuing Operations:
Total Other Income/Expenses Net -297 -3,828 125 116
Earnings Before Int. & Taxes -8,666 -13,854 -9,034 -4,426
Interest Expense 2,212 1,368 217 688
Income Before Taxes -10,878 -15,222 -9,251 -5,114
Income Tax Expense 222 -1,016 699 152
Minority Interest -3,349 -2,491 -1,189 -1,630
Net Income from Continuing Op.s 7,004 -3,963 -4,991 -5,316
Non-recurring Events:
Discontinued Operations -2,885 0 0 -2,315
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 770 -3,963 -4,991 -296
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 770 -3,963 -4,991 -296
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 58,703 32,317 97,165
Short Term Investments 0 0 0
Net Receivables 7,033 8,358 15,302
Inventory 0 0 0
Other Current Assets 7,118 10,261 3,964
Total Current Assets 72,854 50,936 116,431
Long-Term Investments 287,933 233,989 218,982
Property, Plant & Equipt 124,980 60,241 23,537
Goodwill 0 0 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 2,477 3,613 3,316
Deferred Long Term Asset Charges 0 0 0
Total Assets 488,244 348,779 362,266
Current Liabilities:
Accounts Payable 27,655 16,397 39,421
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 0 0 0
Total Current Liabilities 27,655 16,397 39,421
Long Term Debt 81,237 0 0
Other Liabilities 2,497 383 0
Deferred LT Liability Charges 0 0 0
Minority Interest 70,051 57,406 49,603
Negative Goodwill 0 0 0
Total Liabilities 181,440 74,186 89,024
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 401 395 391
Retained Earnings 141,584 126,244 129,351
Treasury Stock -65,543 -65,383 -65,368
Capital Surplus 230,362 213,337 208,868
Other Stockholder Equity 0 0 0
Total Stockholder Equity 306,804 274,593 273,242
Net Tangible Assets 306,804 274,593 273,242
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Mar31,2011 Dec31,2010 Sep30,2010 Jun30,2010
Current Assets:
Cash & Cash Equivalents 29,154 58,703 14,310 32,509
Short Term Investments 0 0 0 0
Net Receivables 21,031 7,033 18,565 19,434
Inventory 0 0 0 0
Other Current Assets 109,106 7,118 5,224 5,297
Total Current Assets 159,291 72,854 38,099 57,240
Long-Term Investments 292,564 287,933 275,199 269,051
Property, Plant & Equipt 48,034 124,980 110,412 78,683
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 2,293 2,477 6,353 6,084
Deferred LT Asset Charges 0 0 0 0
Total Assets 502,182 488,244 430,063 411,058
Current Liabilities:
Accounts Payable 35,038 27,655 32,620 11,922
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 599 0 0 0
Total Current Liabilities 35,637 27,655 32,620 11,922
Long Term Debt 81,775 81,237 32,000 32,000
Other Liabilities 2,268 2,497 616 79
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 73,400 70,051 67,560 66,371
Negative Goodwill 0 0 0 0
Total Liabilities 193,080 181,440 132,796 110,372
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 401 401 399 397
Retained Earnings 142,354 141,584 145,547 150,538
Treasury Stock -65,543 -65,543 -65,543 -65,543
Capital Surplus 231,890 230,362 216,864 215,294
Other Stockholder Equity 0 0 0 0
Total Stockholder Equity 309,102 306,804 297,267 300,686
Net Tangible Assets 309,102 306,804 297,267 300,686
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 15,340 -3,963 -21,464
Operating Activites:
Depreciation 4,969 436 201
Adjustments to Net Income -46,915 -31,670 58,351
Changes in Accounts Recv'bls 7,047 -1,103 13,168
Changes in Liabilities 3,522 -6,249 5,756
Changes in Inventories 0 0 0
Changes in Other Op'ing Actv's 0 -1,055 -5,632
Total Cash Flow fr Operations -5,296 -34,945 50,380
Investing Activities:
Capital Expenditures -59,619 -28,022 -26,317
Investments 558 -581 -2,161
Other Cash Flows fr Investing 0 0 5,423
Total Cash Flows fr Investing -59,061 -28,603 -23,055
Financing Acitivies:
Dividends Paid 0 0 -14,864
Sale or Purchase of Stock 1,674 386 -27,851
Net Borrowings 89,069 -1,686 -8,286
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing 90,743 -1,300 -51,001
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 26,386 -64,848 -23,676
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Mar31,2011 Dec31,2010 Sep30,2010 Jun30,2010
Net Income 770 -3,963 -4,991 -296
Operating Activites:
Depreciation 1,742 1,851 964 1,480
Adjustments to Net Income -15,550 3,478 -4,955 -7,924
Changes in Accounts Recv'bls -3,842 -270 1,472 163
Changes in Liabilities 3,910 5,767 -496 792
Changes in Inventories 0 0 0 0
Changes in Other Oper'g Acts 0 -1,793 -884 423
Total Cash Flow f Operations -7,021 7,561 -7,701 -3,732
Investing Activities:
Capital Expenditures -8,361 -25,000 -10,706 -10,418
Investments 1,239 761 -167 1,620
Other Cash Flows fr Investing 0 1,000 0 0
Total Cash Flows fr Investing -27,245 -23,239 -10,873 -8,798
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 416 1,180 379 115
Net Borrowings -189 59,891 -4 -191
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 227 61,071 375 -76
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -34,039 45,393 -18,199 -12,606
HNR Harvest Natural Resources Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: -1.1900 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.0660 Inventory/Sales < 5%? 1.0000
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? -0.0229
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0593 Long-Term Debt Service: 3.0000
LTD Being Reduced? 0.0000 Short-Term Debt Service: -3.0000
Current Ratio > 2? 2.3550 Working Capital >= 1.5? 0.4474
Leverage Ratio < 20%? 1.0712 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 1.4082 Inventory Turnover > 1? 1.0000
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? -2.1400
Enterprise Value/Revenue: 3.0000 EPS 5-yr Growth > 20%? -3.0000
Enterprise Value/EBITDA: -1.2014 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 0.0000 Collection < 45 days? 0.1875
Rev. Qtrly Growth > 15%? 0.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? -2.1400 Borrowing Int. Rate< 6%? 1.9957
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.3133
Beta > 1.25? 1.7120 % Held by Institut. < 50? 0.8418
50 Da MA > 200 Da MA? -0.3280 % Held by Institut. > 30? 1.9800
52-Wk Change vs. S&P 500: 0.6114 Short Ratio > 5? 2.5200
Price/Book Value < 3? 3.0000 Short % of Float > 20? 1.3250
Return on Assets > 17%? -0.2694 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: -0.1557 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 0.0000 Price to C.F./sh. Ratio: -0.2513
Cash Flow / Assets >.10? -1.9258
HNR Harvest Natural Resources Inc Overall Zenith Index: 0.9675
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Harvest Natural Resources:
Symbol? HNR
Total Months Available: 111
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
14.20 6.45 17.46 10.51 15.08 7.61
RANGE = 17.46 TO 6.45 Close = 10.92
CHANNEL = 14.20 TO 10.51 Degree = 3
Volatility = 33.79% Index = 10
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | - 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | - 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | - 1 |
| Ratios | - 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | - 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | 0 |
| Point & Figure | - 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | + 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | - 5 |
Place 3,040 shares of Harvest Natural Resources (HNR) on the Active List.
