today's e&p weakness

[setliff]

dan, what's your take on the relative weak performance of the e&p's today with crude up >7%.

I tend to think a lot of folks were taken in by past wti rallies and want to see if its real this time.

there is of course the element of profit taking from yesterday, but charts don't show that much resistance.

[dan_s]

I think there is just some profit taking on Fridays. Lots of short-term traders in this market. Plus, this may just be a lot of short covering and not a lot of new buyers.

BIG RISK for those shorting in this market is that when they want to cover there are not a lot of committed buyers. This is especially true on the small-caps that don't have as much trading volume.

We are going to publish an updated profile on Devon Energy (DVN) later today. It looks really good to me. I like their deal in STACK, but in a bear market deals of that size scare the Wall Street gang who does not know how to evaluate it. Those of you in Gastar should listen to the Devon webcast on December 7, which you can download from the Devon website. It will help you understand why I believe Gastar has HUGE upside in Oklahoma.

Weakness in SYRG is because of the equity offering, which will bring my valuation down to $11.00/share.

[bearcatbob]

SN did great and stayed great. LPI started great and fizzled out badly. Interesting.

[dan_s]

LPI has 85% of 2016 oil hedged at $70/bbl.

The fact that if moves in lock step with oil prices makes no sense to me. Cash flow per share for 2016 is going to be solid. See the forecast model.

AR has 100% of this year's gas production hedged at very good prices and it also flops around with commodity prices.