Tuesday, September 24, 2013

Is Something Going On With Oasis?

Updates

Later, 1:50 pm CT: three related headlines:
Later, one minute later: just after posting the original post below, I went "around the horn," and almost all oil companies are having a good day today, some better than others. CLR is jumping, so it is not just Oasis, but Oasis is clearly the standout. Right now, it looks like the Goldman Sachs article linked below that is moving shale oil companies. And the one company GS recommends as a sell (WPX) is down over a percent.

Of the 53 new highs today: BCEI, CLR, OAS, WLL, WMS.
 


Original Post

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

On an otherwise flat day for the market, and on a day when the price of oil is falling, all of a sudden, out of the blue, after hitting recent highs, OAS pops another $2.00, up almost 5%.

I don't see any Oasis headlines (I will keep looking) but any stock that pops 5% without an obvious reason ....

KOG is up a percent, so the surge in Oasis could simply be due to analyst's ratings. Last week Sanchez mentioned four companies "with top fundamentals." The only energy company of the four mentioned was Oasis.

Today, I see Goldman Sachs, in Barron's, names Oasis and Approach Resources as top picks for US shale prices
Not all stocks are created equal, however, and the analysts expect some stocks to handily outperform others, and their top picks “are poised to deliver long-term, capital-efficient growth…while trading at attractive valuations that currently provide 20%+ upside to our price targets.” Their winners? Oasis PetroleumApproach ResourcesBonanza Creek Energy, and Gulfport Energy, all of which are rated Buy with Oasis also added to Goldman’s conviction list. Investors, however, should avoid  WPX Energy, which the analysts rate a Sell.
So, now back-to-back, in less than a week, one article in Barron's and one article in IBD both name Oasis as a top pick. 

2 comments:

  1. I have followed the Bakken very closely since 2008. Your blog certainly helps in that regard. Throughout this process-I have less and less respect for Wall Street. I have owned Continental since it was $35. I may have owned it for less a few times prior-but I got in and out of a few Bakken Companies until I was comfortable with what I wanted,
    Now we are supposed to be all respectful to Goldman Sachs-because they are just noticing the Bakken NOW when Continental is about $105. Triple what I am in at. Welcome to the party boys.
    From Day 1-Something told me that the Bakken was real and that it was big. My Bakken investment strategy was always to buy and hold and watch the big boys come to the party. The fun part is they seem to be piling in lately.

    ReplyDelete
    Replies
    1. That's interesting: I did the same thing. Either in and out, or nibbling at a few shares in a number of companies starting several years ago, adding to positions as often as possible, and, like you, always fine tuning to concentrate on certain companies that seemed to be the ones "we" were comfortable with.

      I am not agile enough to trade stocks, so I buy and hold for the very long term, though I will trade on occasion, under certain circumstances.

      I could write volumes about the Wall Street story in the post above and in response to your comments but perhaps in a stand-alone post; comment section not enough space.

      I really appreciate your kind comments. I have been told there will be a very, very good link tomorrow to follow.

      Delete