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This Monday I've got a buy recommendation on Cabot Oil and Gas. Technically and fundamentally Cabot looks like a nice low-risk high-reward currently. After reviewing the global stock indicies, the markets look like they could possibly have a Santa Claus rally here. Long-term I'm still a bear for the broad market, but I'm thinking the September October lows might be retested at some point, and if they do, I can see another bear market upside rally taking place after that. I would then be a buyer for a quick upside pop, but probably not a long-term holder. So far, the markets seem to be staying in the sell-off trading range they been in since September October. There's still plenty of uncertainty out there which the markets are currently showing. Nothing wrong with just holding cash. Its a good trade and investment especially in uncertain times like now.
Zacks Investment Research is maintaining an Outperform recommendation on shares of Cabot Oil & Gas, reflecting its impressive exposure to the high-return Marcellus and Eagle Ford Shale plays, as well as its above-average production growth. Furthermore, the capital infusion of over $200 million bodes well for Cabot, which will help it to bolster its natural gas operations. Buoyed by the growth momentum from the company s drilling efforts, particularly in its North region, Cabot recently reported robust third-quarter results. A relatively low risk profile and longer reserve lives are other positives in the Cabot story. Considering these factors, Zack's believes Cabot is well positioned going forward and consider it an attractive investment.
Cabot Oil & Gas Corporation operates as an independent oil and gas company in the United States. The company engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil, and natural gas liquids. It holds reserves in north region comprising Appalachian and Rocky Mountains areas; and south region consisting of Anadarko basin with Texas and Louisiana areas. The company also transports, stores, gathers, and purchases natural gas for resale. As of December 31, 2010, it had proved reserves of approximately 2,761 billion cubic feet of natural gas equivalents. The company was founded in 1989 and is headquartered in Houston, Texas.
Buy Long Cabot Oil and Gas - Ticker COG
Buy Entry: 71.70 to 75.76
Take Profit Areas: 89.94 to 92.62, 94.76 to 97.62, 109.51 to 112.78, 137.48 to 141.56, 158.46 to 162.74
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