I will soon be making some changes to our Sweet 16 portfolio. I have found several companies that I believe offer us better growth potential than a few of the existing companies.
Leaving soon:
1. American Oil & Gas (AEZ) is up 26% since I added it to the S-16 on July 1. It took the place of Arena Resources (ARD) that was taken over by SandRidge (SD). SD is currently on our Watch LIst. AEZ is being merged into Hess Corp. (HES) in an all stock deal. Therefore, it now moves in lock step wiht HES. I like HES (worked there for 18 years) but I don't think it is a good fit for the Sweet 16. If you still own AEZ I think it is time to sell or just hang on and take the Hess shares. The deal should be closing by year-end.
2. Ram Energy (RAME) is down 26.8% YTD. It has been a disappointment since I orginally thought it would be our comeback story of the year. The company is for sale and a deal should be announced soon. If you do still own the shares then you should hang on as the deal or recapitalization should be announced soon. I don't think their board will approve a sale at the current share price.
The replacements will be announced on October 1 when I put out the new Sweet 16 Portfolio. It will only be available to our Premium Members on the website under the Sweet 16 tab for a few days before I discuss it here.
Dan
Sweet 16 Changes on the way
Sweet 16 Changes on the way
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Sweet 16 Changes on the way
This article will help explain some changes I will be making in the Sweet-16 Growth Portfolio.
http://seekingalpha.com/article/227539- ... urce=yahoo
It also explains why I remain bullish on EOG.
Dan
http://seekingalpha.com/article/227539- ... urce=yahoo
It also explains why I remain bullish on EOG.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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bearcatbob
Re: Sweet 16 Changes on the way
How important is current price in selecting a stock for the Sweet 16. For instance, SD is down, but is restructuring. If the restructure is analyzed by a knowledgable perons (read Dan) and deemed credible - it would seem a far better buy than a great company fully priced.
Bob
Bob
Re: Sweet 16 Changes on the way
For the Sweet 16 I'm looking for companies with the following:
> Strong Balance Sheet
> Production and reserve growth locked in with their current assets
> Growing oil production (I'm still bearish on NG)
> Capital expenditures covered by operating cash flow (not easy to find)
> Exploration upside
TGA is the best example and look what it has done for us this year.
XEC is the newest member of the S-16. It is solid as a rock and a lot of growth on the way. Take a look at my forecast model under the Sweet 16 tab.
I took a chance with ATPG and RAME this year. They both had too much debt heading into this year and it has hammered them. ATPG would be much higher if not for the federal moritoriam on drilling and I do think it will make a comeback, but still a lot of risk with all that debt. RAME will disappear soon.
SD is an example of a company we want on our Watch List. It is difficult to figure out how it will do "post merger" with ARD. Look at the wide range of EPS estimates given to First Call. I promise to take a look at it after their 3rd quarter report comes out.
Dan
> Strong Balance Sheet
> Production and reserve growth locked in with their current assets
> Growing oil production (I'm still bearish on NG)
> Capital expenditures covered by operating cash flow (not easy to find)
> Exploration upside
TGA is the best example and look what it has done for us this year.
XEC is the newest member of the S-16. It is solid as a rock and a lot of growth on the way. Take a look at my forecast model under the Sweet 16 tab.
I took a chance with ATPG and RAME this year. They both had too much debt heading into this year and it has hammered them. ATPG would be much higher if not for the federal moritoriam on drilling and I do think it will make a comeback, but still a lot of risk with all that debt. RAME will disappear soon.
SD is an example of a company we want on our Watch List. It is difficult to figure out how it will do "post merger" with ARD. Look at the wide range of EPS estimates given to First Call. I promise to take a look at it after their 3rd quarter report comes out.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Sweet 16 Changes on the way
where do you see xec getting their growth? seems to be very natty.
jim
jim