Sweet 16 Update - April 5

[dan_s]

The Sweet 16 Growth Portfolio spreadsheet has been updated and posted under the Sweet 16 Tab:
> Tab 1 is a summary of the EPS and CFPS forecasts for the individual companies,
> Tab 2 shows my Fair Value Estimate compared to First Call's Price Target for each company as of 4-5-2014

The Sweet 16 is up 10.3% YTD.

All of the individual company profiles and forecast models are now up-to-date. My 2014 forecasts are now broken out by quarter and I have added my full year forecast for 2015 for each company.

All of the Sweet 16 are going to report strong Q1 results, thanks to high oil prices and the spike in natural gas and NGL price. All 16 companies should report production growth from Q4 to Q1.

Bonanza Creek Energy (BCEI) has pulled back on concerns over their recent management changes. I see no reason to panic and I would use this dip to add shares if you don't already own it.

Rosetta Resources (ROSE) is finally up for the year. ROSE had a rock solid 2013 with production up 33.5%. They have at least 20% production growth locked in for both 2014 and 2015. ROSE is a Strong Buy at today's share price.

Oasis Petroleum (OAS) and SM Energy (SM) are still down YTD, but showing signs of life. They are both rock solid with strong production growth coming this year. SM should report a big revenue boost from the spike in natural gas and NGLs in Q1.

This week my attention will be on our Small-Caps and High Yield Income portfolio companies. We will send out updated profiles on AREX, CRK, CRZO and VNR this week.