trade strategy--sm vs nfx

[setliff]

today I sold nfx and bought sm -- plan on taking advantage of sm's high beta vs nfx's more stable price. if or when sm overtakes nfx I will reverse the trade.

fwiw--time will tell. X (fingers crossed) comments welcome.

jim

ps-- for those aware, wife is improving.

[par_putt]

Hope SM works out.

Glad to hear Wife is improving.

[dan_s]

Very glad to hear about your wife. I hope you can make it to our luncheon in Dallas on Tuesday.

NFX should have some very good things to tell us about STACK when they report 3Q results early next week.

[setliff]

lunch--i'm planning on it!

[dan_s]

You should all listen to the replay of the SM Q3 conference call and follow along on their slides. SM is trading at less than half of my valuation. They have done a great job getting D&C costs down and getting LOE down. Operating results continue to be impressive and it has a very strong balance sheet.

Their recent downspacing pilots are proving that tighter well spacing in the Eagle Ford will significantly increase the recoverable reserves per acre. EVENTUALLY the market will warm up to this strong growth story.

[setliff]

today is just one data point, but

nfx down .02%; sm up 6.58%

nfx is at strong resistance and will take some real good news to break out.

X

[dan_s]

I am expecting VERY GOOD news from NFX on STACK. All of you that own GST should listen carefully to what NFX, CLR, XEC and DVN have to say about SCOOP and STACK.