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  • ION Geophysical: Stock to Watch
     We recently added ION Geophysical to our list of Oil Service Stocks to watch and back in November, we speculated on Investors Hub that IO would be on an upward trend. As you will see in the following article, others believe that it is worth watching as well. Despite ION Geophysical’s somewhat tumultuous past, it looks like their recent lawsuit against Sercel might change their stocks for the better. It has been predicted that the ION Geophysical stocks will consistently increase for a few years to come. Seeking Alpha Contributor, Michael Filloonagrees…

    Following ION Geophysical the last few years, I would describe it as a roller coaster. ION began trading on the Nasdaq in 1991. In 1996, the company traded as high as $40 per share on very high expectations. But then Input/Output’s segment was unable to meet those expectations. Over the years, ION Geophysical has made several acquisitions:

    • 1994-Tescorp
    • 1995-Western Geophysicals Exploration Products Group
    • 1997-Green Mountain Geophysics
    • 1998-DigiCourse
    • 2001-Pelton Company
    • 2002-AXIS Geophysics
    • 2004-Concept Systems
    • 2004-GX Technology Inc.
    • 2008-ARAM Systems Ltd.

    By 2005, ION Geophysical traded down to the $5 range, where it traded in a range between $3 to $15 until the company experienced a significant drop in stock price to a low of around $1 in February of 2009. Since then, the stock has been on a tear. ION hasn’t traded below its 50 day moving average since September of 2010. After a strong earnings reportin February, ION won a key lawsuit against Sercel. The lawsuit awarded damages, but more importantly, protected patents owned by ION.

    Read the entire article here:

    Tags: IO
    Apr 06 1:12 PM | Link | Comment!
  • Buffett and Wilbur on Natural Gas
     If oil reaches that anticipated $300 some are predicting, natural gad may presented with a better platform than ever. If a shift occurs toward natural gas, you energy stock investor will have to be prepared to make a shift as well. Especially if you have major investments in oil. Devon Shire, of Seeking Alpha, compares the opinions of Warren Bufftett and Wilbur Ross. Their opinions having similarities, there are definitely some differences as well with discussion of Exco Resources as the topic of conversation.

    Exco has strong positions in two major shale plays, the Haynesville (80,000 acres) and the Marcellus (110,000 acres). The company is targeting 30% production growth for the next 5 years. It also believes it can fund drilling from cash flow and achieve a 20% pre-tax IRR at today’s commodity prices. I like Exco because directors own over 32% of the shares outstanding. I don’t, however, invest in Exco because I have no clue where natural gas is going. And in my opinion these shale plays are pretty borderline at $4 natural gas.

    One very well known investor has however taken a big position in Exco.Wilbur Ross owns 7.5% of the company. And he has done so because he has a bullish opinion on the future of natural gas prices in the United States. Ross told CNBC earlier this year that he thinks that natural gas is going to be a key component in the coming years in helping the United States becoming energy self-sufficient. Ross is not blind to the fact that there currently is a “glut” of natural gas in the United States, but he thinks it will be cured by increased domestic demand as well as exporting LNG outside of the States.

    I think it is a bit of a risky bet by Ross. It is going to take a large change from the status quo to increase domestic demand to the amount needed to offset the supply available. Any rebound of natural gas prices is simply going to give all of these shale players more cash to ramp up the drilling and production to even higher levels.

    Read the entire article here:

    Tags: XCO
    Apr 05 1:47 PM | Link | Comment!
  • Picks for $220 Oil
     Picks, picks, and more picks! There are daily speculations about oil stocks that you should choose. Why not take in one more opinion, it might just be the one that strikes a chord. Michael Bryant of Seeking Alpha points out some great oil stocks that he chooses as his upcoming picks. If you have been keeping up with us at Turn Key Oil, you know that we pick these too! For example, we have been eying stocks such as Kodiak Oil (NYSE:KOG), Royale Energy (NASDAQ:ROYL), and BP (NYSE:BP) as far back as November on Investors Hub. One more speculation can never hurt!

    As oil is likely to rise, I stand by my old picks: Atlas Pipeline (AHD), Delta Petroleum (DPTR), First Majestic Silver (AG), Great Panther Silver (GPL),and Royale Energy (ROYLfrom my $140 oil article.These stocks will likely perform the best if oil rises. As for Toyota (TM), the current tsunami in Japan has crippled the stock, and it now seems a buy not on oil but as a value play. On Chemical & Mining Company of Chile (SQM); lithium will be in very high demand if oil soars.

    Two additional picks I would recommend are Samson Oil & Gas (SSN)and Kodiak Oil (KOG). Both have significant interest in the Bakken Shale in the U.S. and seem poised to jump if oil surges.

    Other plays I would recommend are oil services. As oil rises or falls (it will be volatile as news of the Middle East and North Africa situation come out) companies that provide services to oil producers will still be in high demand.

    Read the rest of the article here:
    Apr 05 1:44 PM | Link | Comment!
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