A day later, March 21, 2011, a Street Sweeper.com article came out questioning the valuation of NOG. Most retail investors did not see that article until a couple days later. I would have completely missed it had someone not sent me a link which I immediately shared on the blog. I posted it as soon as I got it.
Talk about a gut check for long term holders of NOG.
If I thought we were seeing a fourth opportunity to invest in the Bakken last weekend, this pullback in NOG was an outstanding opportunity for folks to get in who might have missed it earlier.
But for those holding NOG, and or those who had recently bought NOG at $30 or higher, it was a gut check.
It appears that NOG has leveled off, was perhaps oversold, and is now going back up. Up 3.5 percent today. In addition, I have been seeing more reports that NOG is doing just fine. (I don't follow VOG very closely, but my gut feeling is that VOG is a johnny-come-lately, and if given the choice, I would take NOG before VOG. But I have missed some great opportunities in the Bakken, and VOG might be a better choice for some folks, especially for traders.)
On top of that, the price of oil will end the week above $105. The leaders in the market today have been energy, and if you go to the sidebar at the right, you will see that everything (with one or two exceptions) is "green."
As noted, on Sunday a week ago, I posted that this looked like a fourth opportunity to get into the Bakken.
It's been an interesting week.
Note: this is not an investment site. These are my observations only. I found that I cannot tell the Bakken story without observing investment angles. I'm making no recommendations. Simply conversational observations.
Again, for those who need reminders, three things.
- First, Hess said that the Bakken was robust at $40 oil (folks, we're at $105, which appears sustainable).
- Second, look at the Whiting wells in the Sanish, just to get an idea of what the Bakken can produce. Folks, these are incredible wells, and there are no "dry" wells in the Bakken.
- Third, leases are held by production for "eternity" (my definition of "eternity" elsewhere).
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