Seeking Alpha

Favorite stocks of Canaccord Genuity oil and gas analyst John Gerdes, post Q1 earnings: APC,...

Favorite stocks of Canaccord Genuity oil and gas analyst John Gerdes, post Q1 earnings: APC, BBG, COG, CRZO, CRK, EOG, GDP, SM. Gerdes rates SandRidge (SD) a Sell, citing over-enthusiasm as to Mississippian play productivity and under-appreciation of long-term capitalization challenges.
Comments (6)
  • DeepValueLover
    , contributor
    Comments (8382) | Send Message
     
    SD has been getting killed lately.
    15 May 2012, 03:39 PM Reply Like
  • Steven Anthony
    , contributor
    Comments (45) | Send Message
     
    Don't just look at SD, look to see what the sector on a whole is doing. Also with the market down hard over last couple weeks money moves from speculative to High Dividend, Cash Etc. Dow down approx 700 pts, S&P down approx 80 pts, Nas down approx 175 pts since beginning of May. Even Apple is down, the markets beloved, nearly 90 pts (15%) from high in April. SD is far more speculative so with the above it will take a hit. Not to mention CHK's mess.
    15 May 2012, 04:43 PM Reply Like
  • TFCAB
    , contributor
    Comments (1958) | Send Message
     
    Add CJES & RES to that list :(
    Long SD as well
    15 May 2012, 04:25 PM Reply Like
  • Mr Ed
    , contributor
    Comments (46) | Send Message
     
    Their are better analyst, who look for $10-12 per share,who have a better record in their market calls for profits. CHK and China have made all NG and OIL stock to be under pressure. For the gamblers a new USA Government is coming that will be PRO NG ad OIL. You want to own NG and OIL for a two-three year hold. The sector is beaten down. Remember this happen to all sectors at some time. I like DVN,SD,CVX. Average in to your purchases.
    15 May 2012, 06:12 PM Reply Like
  • Grandpa in Tucson
    , contributor
    Comments (37) | Send Message
     
    My question - Is this a short term or long term perspective?
    Short term SD is seeing stock price/value diminished -- in my opinion, primarily because SD does not have a dividend. For those who look for value based strictly upon short term stock price, my opinion would be to sell SD. For those who are long term investors with the fortitude to weather ups and downs for the next 12 - 18 months (the political environment notwithstanding), my opinion is to buy during the lows.
    I am long SD.
    15 May 2012, 06:22 PM Reply Like
  • wald22
    , contributor
    Comments (179) | Send Message
     
    I do not know how to say this, but here goes anyway. Corporate credit spreads are widening. As I see it we are headed into a credit event where the cost of credit default swap protection (insurance) cost is increasing dramatically. Both CHK and SD are being forced to pay higher rates because of risk as they get downgraded. To me SD has the same problems CHK has minus the CEO and BOD problem. Since neither can cash flow through production they are forced to sell assets that are productive which makes them sellable but reduces their income through production. SD to me has a better chance to survive if they get rid of what is not productive even if it means taking a loss. To me CHK is done for. Most of their lease acerage holdings is worthless, for the cost to produce exceeds gain from production. 2/3 of their wells are uneconomic. 1/3 of SD wells are uneconomic. The trick is to sell the money loosers, not the profitable ones. Sell the worst hold the best, not sell the best hold the rest.
    18 May 2012, 11:04 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|