Double Eagle Petroleum a Speculative Play

| About: Double Eagle (DBLE)
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Today I added Double Eagle Petroleum (NASDAQ:DBLE) to the Barchart Van Meerten Speculative portfolio solely on price momentum.

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Double Eagle Petroleum Co., an energy company, engages in the exploration, development, production and sale of natural gas and crude oil primarily in the Rocky Mountain Basins of the western United States. The company’s principal properties include the Atlantic rim coal bed natural gas project located in south central Wyoming; the Pinedale Anticline property in the Green River basin of Wyoming; the Wind River basin in central Wyoming; and the Moxa Arch and other areas located in southwest Wyoming. It also holds interest in various properties located in North Dakota, Oklahoma, Texas and Utah. In addition, Double Eagle Petroleum Co. engages in the transportation of gas through its intrastate gas pipeline. As of December 31, 2009, the company had estimated proved reserves of 89.8 billion cubic feet of natural gas and 419,000 barrels of oil. It also owned interests in a total of 1,172 producing wells and had an interest in 359,830 gross acres natural gas prone basins of the Rocky Mountains. The company was founded in 1972 and is headquartered in Casper, Wyoming.

Factors to Consider

Barchart Technical Indicators

  • 80% Barchart short term technical buy signal
  • Trend spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 53.03% in the last month
  • Relative Strength Index 74.24% and rising
  • Trades around 9.40 with a 50 day moving average of 7.67

Fundamental Factors

  • Only one analyst recommends that clients hold onto this stock but he expects an annual earnings increase of 25.00% annually over the next five years.

General Investor Sentiment

  • Even though this stock is not followed by Wall Street it is followed by 280 readers on Motley Fool and 95% of them believe the stock will beat the market.
  • The more experienced All Stars vote 93% for the same result.

Summary: Double Eagle Petroleum has always had volatile sales and earnings so it is a highly speculative holding. Nothing is sure on this one.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.