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Credit Suisse cuts its ratings and price targets on three smaller oil producers: Carrizo's (CRZO...

Credit Suisse cuts its ratings and price targets on three smaller oil producers: Carrizo's (CRZO -2.5%) leverage is too high to be overcome in terms of creating long-term value, Kodiak's (KOG -1.3%) share price has been propped up by the company's frequent mention as a takeover target, and Whiting's (WLL -2.2%) future growth is being driven by projects with diminishing returns.
Comments (4)
  • kodiak cowboy
    , contributor
    Comments (82) | Send Message
     
    I have been a student of this company for over 5 years. Kodiak will meet their 4th quarter forecast. The price of oil has been creeping upward everyday, and not just because of Algeria. China is once again on the move. Europe is quiet. And the middle east is always a hot spot along with Africa. The price Kodiak is receiving is moving up due to better differentials with Brent crude. Pipelines are completed, as well as increased rail to the coasts. This will boost Kodiaks earnings as well as reduced and controlled costs. Growth sales and income will continue to expand and should be ahead of forecasts. They said they lowered it to a hold because of the stock price being high because of takeover speculation. That is absurd. The price should be above $10 with a 6 month price target of $14.
    I think sometimes these so-called experts just like to flap their lips or else they are trying to set up their next buy.
    18 Jan 2013, 02:37 PM Reply Like
  • worldnet1
    , contributor
    Comments (65) | Send Message
     
    I think that the comment applied to Kodiak regarding their price being propped up due to takeover speculation applies more to WLL. Seems every couple of months their price spikes due to a buyout rumor - then it proceeds to sink.
    19 Jan 2013, 12:57 AM Reply Like
  • indytom01
    , contributor
    Comments (48) | Send Message
     
    Cowboy, I could not agree more. You really do have to question the motivations of these so-called experts and the timing of their comments. In addition to your Kodiak observations, this analyst comments that Carizzo's "leverage is too high to be overcome" to create long-term value value. Yet, in the last conference call management puts cash-flow as going positive in Q4 of this year for financing the drilling program. Earnings have grown at a solid clip already, but eliminate the need for doing as much with asset sales and JVs and earnings then let's see how earnings increase. Not to mention CRZO's valuation being significantly lower than peer's like KOG and BCEI.
    19 Jan 2013, 02:59 AM Reply Like
  • swampfox1
    , contributor
    Comments (70) | Send Message
     
    I've made a very nice living for the past twelve years by fading the "experts"
    20 Jan 2013, 03:09 PM Reply Like
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