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MTDR: Zacks says to sell

Posted: Thu Apr 24, 2014 9:20 am
by dan_s
From Zacks Equity Research Team: "Matador Resources Co (MTDR) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because MTDR is now in overbought territory with an RSI value of 70.1. Furthermore, Matador Resources currently has a Zacks Rank #4 (Sell), suggesting that investors may want to consider exiting this stock now before it falls back to Earth."

MTDR is approaching my Fair Value Estimate of $29.00 / share.

If you have a large gain on this one, consider selling half now or selling covered calls.

I need to see Q1 results before I can adjust my FVE.

Re: MTDR: Zacks says to sell

Posted: Thu Apr 24, 2014 10:26 am
by sansonetx
Zack's has a bad track record IMHO.I have read a lot of their reports and they usually turn out to be just the opposite of reality.

Re: MTDR: Zacks says to sell

Posted: Thu Apr 24, 2014 8:32 pm
by dan_s
I agree that most of Zachs stuff is crap. I think they value stocks looking backwards. I look forward.

However, I do think MTDR is getting close to Fair Value.

Note that in the past, I have see Sweet 16 companies trade well over my Fair Value Estimates. Companies with this much growth locked in do deserve to trade at higher multiples.