Sweet 16 Update - March 17

[dan_s]

Sweet 16 Growth Portfolio: Updated spreadsheets showing our Fair Value estimate for each company and our Net Income and Cash Flow Forecasts for 2012 are now available to members under the Sweet 16 Tab.

The Sweet 16 is now up 15.4% year-to-date. TGA, CLR and DNR are leading the pack. All are heavily weighted to oil and all three have strong production growth locked in.

Gastar is an interesting small-cap. Its name is not helping in this natural gas market. They should report steady production growth this year with a much higher percentage of liquids by year-end. I like the pfd stock better than the common for this one.

Share prices will move as a group in responce to oil prices until we see 1st quarter results, which should be very strong.

EXXI still in limbo waiting on the results from Davy Jones well.

EOG, CRZO and ROSE should report some very good Eagle Ford completions during the 1st quarter. Well economics in the Eagle Ford are much better than in the Bakken. Most operators are getting their oil to the coast so they get premium prices for the oil.

GTE sure looks cheap to me. Almost a pure play on oil, debt free and a ton of exploration upside. Their capital program is being funded entirely by operating cash flows. PMG also looks good. First Call has a $28.40 target price on PMG.

I recommend accumulating our favorite onshore drillers (HP and PTEN) over the next few months on the dips. The active rig count always dips in Q2 but I think it will hold up better than Wall Street thinks as this year's Spring Break-up period will be much shorter due to the mild winter. If liquids prices hold up, these stocks should do quite well starting in the 3rd quarter.

[dan_s]

Check this out;
http://www.bloomberg.com/news/2012-03-1 ... cmpid=yhoo