i originally bought a few thousand shares of br at 30 when it was on its way to $25. around 39 or 40 i sold some calls at 42.5 (a mistake) and let the br go in May rather than buy the calls back. this stock acts so squirrelly i figured i could buy it back somewhere below 43.5 before it went over 47.5 then on up. so a couple of weeks ago i put in a trash bid gtc for 1000 shares at 41.5. i bought some yesterday at 43 to make Sure i got it, but i was so happy that it went off at 41.5 also. did more than 1000 shares go off at 41.5?
i thank the tech rally for gifting me these br shares, because i do think that's why the oils in general tanked off their recent highs. some i think paniced and sold off oils/gas to get back into tech or to double down to try to get their tech losses back to break even. anyway i think the blowout earnings in the oil and gas biz coming up after june closes will get the street back into oil/gas in a bigger way than we have seen. i am not slamming tech stocks. i loved them. i am a technologist in the chip and wireless biz, and i used to have a lot of tech. i only have one tech now (which i loved too much), and i am planning to sell it out to some anxious buyer if we can keep the tech rally going for a few more weeks or longer.
in 2000 br seems to want to get its balance sheet pretty, its cash flow much higher, and earnings per share up so the street will like it better or a takeover buyer will pay up. br delivers the most gas already, so (assuming gas stays high and higher -- i think this is a great assumption) br would want to let time take some hedges off so they can get more gas delivered in the $3-4 range. this appears to be happening and will really improve the balance sheet/earnings. did you see that $50M of br's earnings last quarter were eaten up by interest (it was $187M minus $50M = $137M as i recall (correct me if wrong)). getting rid of some of that debt with the improved cash flow will help earnings a lot. buying back the shares as announced on june 2, will help the earnings per share also. if all these things happen, br will probably more aggressively drill in 2001 (why drill now to get more reserves. they bought huge reserves last year with poco). i like what br is doing with their new found money, and i think the actions will make for a stronger company and a stronger stock price. if the people who sold out br friday were doing it to play the tech side, they should be very nimble or they may not have as much money when they want to come back into br.