Athletic Momentum for Athlon?
Two recent Seeking Alpha articles about Athlon (NYSE:ATHL) by Michael Filloon and Value Digger make a case for the company's upside-Filloon-but suggest it is not a value stock-Value Digger. Here, the thesis on Permian stocks and Athlon in particular, is that their attractiveness depends on investor belief about long-term oil price strength. For momentum investors, Athlon and other domestic oil producers may be worth reviewing due to lack of political stability in non-North American oil-producing countries, especially Iraq and Libya. Second, Athlon's success with vertical wells in the established Spraberry formation has helped the company de-risk newer, more expensive horizontal wells in the equally-attractive Wolfcamp formations.
The militant takeover of parts of Iraq, OPEC's...
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