HUSA (Houston American Energy Corp.):
📉 Stock Overview
- Current Price: The stock is trading around $0.96, near its 52-week low .
- Past Year Range: The share price has fluctuated between approximately $0.50 and $2.58 .
- Notably, there was a 1-for-10 reverse stock split executed in late May, which likely explains much of the dramatic range shifts .
🏭 Company Background
- Houston American is a small oil & gas exploration firm with operations in the Texas Permian Basin, Colombia, and Louisiana .
- They recently finalized the sale of an 18% interest in Hupecol and appointed a new CFO, signaling possible restructuring .
📊 Financial Metrics
- P/E Ratio: Negative (around –1.8×), indicating no recent profitability .
- Price/Book Ratio: Elevated (~2.4×) compared to industry peers (~0.6×) .
- Price/Sales Ratio: Also notably high (~32× vs. ~1.2× for peers), suggesting the market values its revenue relatively highly despite low scale .
- EPS (TTM): Approximately –7.49, showing ongoing losses .
- Market Cap: Around $29 million, making it a very small-cap company with just 2 employees .
🔍 Analyst & Technical Sentiment
- The stock has hit a 52-week low multiple times recently (at $0.96 most recently, and as low as $0.50 previously) .
- Despite fundamentals, technical indicators suggest a “Strong Buy” signal, possibly due to recent momentum or oversold conditions .
⚠️ Key Risks
- Extreme volatility, accentuated by the reverse split.
- Lack of profitability, reflected by negative earnings.
- Premium valuation multiples despite being a micro-cap with limited revenue.
- Energy sector exposure, which is sensitive to oil & gas price fluctuations and execution risk in drilling projects.
🔎 Summary
HUSA is a tiny oil & gas exploration stock trading near long-term lows. The fundamentals—namely ongoing losses and high valuation ratios—suggest considerable investment risk. The recent reverse split may artificially inflate per-share metrics. That said, technical charts hint at short-term bullishness, but any investment here is likely speculative and high-risk.
Thinking of investing? Be cautious. This is a speculative micro-cap in a volatile sector. If you’re seeking a lower-risk option, you might want to target larger, more stable energy companies.
