Sweet 16 Update - October 8
Posted: Tue Oct 08, 2013 8:11 pm
At the October 8 closing prices, the Sweet 16 is up 37.6% YTD. The S&P 500 is up 16.1% YTD.
Four of the Sweet 16 are approaching my Fair Value Estimates, so you should consider trimming back: CXO, XEC, GPOR, KOG
If they exceed my production forecasts the Fair Value Estimates will be going up. All four are rock solid and they should report impressive Q3 results.
Companies trading at more than 40% BELOW my Fair Value Estimates: DNR, EXXI, GTE, SM, UNT and WLL. I am expecting strong 3rd quarter results from all of them. Of these six, SM looks like the best bet to me. It should have impressive results in the Eagle Ford and the Bakken. SM also has a lot of natural gas production. I now think there is a VERY GOOD chance we see Ngas move over $4.00 by December 1. That will be good news for XEC, EOG, EXXI, GPOR, RRC, SM and UNT.
The Market's weakness is from the craziness going on in Washington. Energy Sector fundamentals are very good right now and should stay good well into next year. We could see a bit of a pull back in oil prices in Q2 2014.
The Federal government shutdown is a joke and you should not be concerned with it. The government is not shut down at all. A slightly more important issue is the debt ceiling, but that is also a joke. The U.S. is going to pay its bills. This is all political drama that will soon come to an end. The market will rally in November, regardless of which party gets their way. There are no "winners", just a bunch of fools playing games in a attempt to impress the bigger fools, the typical American voter.
Four of the Sweet 16 are approaching my Fair Value Estimates, so you should consider trimming back: CXO, XEC, GPOR, KOG
If they exceed my production forecasts the Fair Value Estimates will be going up. All four are rock solid and they should report impressive Q3 results.
Companies trading at more than 40% BELOW my Fair Value Estimates: DNR, EXXI, GTE, SM, UNT and WLL. I am expecting strong 3rd quarter results from all of them. Of these six, SM looks like the best bet to me. It should have impressive results in the Eagle Ford and the Bakken. SM also has a lot of natural gas production. I now think there is a VERY GOOD chance we see Ngas move over $4.00 by December 1. That will be good news for XEC, EOG, EXXI, GPOR, RRC, SM and UNT.
The Market's weakness is from the craziness going on in Washington. Energy Sector fundamentals are very good right now and should stay good well into next year. We could see a bit of a pull back in oil prices in Q2 2014.
The Federal government shutdown is a joke and you should not be concerned with it. The government is not shut down at all. A slightly more important issue is the debt ceiling, but that is also a joke. The U.S. is going to pay its bills. This is all political drama that will soon come to an end. The market will rally in November, regardless of which party gets their way. There are no "winners", just a bunch of fools playing games in a attempt to impress the bigger fools, the typical American voter.