- Rubis is an under-covered oil stock listed in France, with little commodity price exposure.
- Although the terminal exposure is positive and would likely produce similar broker-esque returns were oil prices to collapse again, there is still volume risk in the distribution business.
- Although the dividend is attractive, we see general dangers in oil going forward as COVID-19 vaccine rollout timelines remain uncertain, and therefore the stock remains pressured.
- With a threatened dividend and trading in an oil group, the COVID-19 environment, which is likely to persist, will not look kindly on Rubis.
For further details see:
Rubis: Volumes Are The Problem, Not Price