What are your feeling about the downturn in NE? Could we reach the 33 dollar area or lower? I think we have a short window to add share of NE before the Hogs start buying up shares based on NE's growth potential.
Thanks to all who have added to our thoughts on "downside" of NE. I agree that we need to stay on the side line for a little bit, but if it gets into the 33 or below area, I will be adding.
I think feilds59 put it very well pismire. Anything I say is fairly derivative to his post, but I'll venture a few thoughts.
It would appear the market (and the drillers, in particular) are suffering from yet another round of euro melt down fears. These have been pretty dependable false scares for several years now. Will this be another false scare, creating a buying opportunity? I'd guess so.
I'll start adding under 35, and get aggressive if it falls to 30. I'm no chartist, so I don't have an exact number, just a general plan, based on playing this range for several years now. I'd counsel a bit of patience at the moment.
I think it's pretty likely we'll go below 35, but not far.
according to mgt the growth is always around the corner. this stock gets a discount due to serial mgt missteps. Where is the eps growth? eps is lower than a few years back yet we spend billions and billions on acquisitions and new builds.
I would guess 33 is the absolute bottom, and more likely 34-35. At these prices the stock becomes attractive for the dividend alone. More importantly, it's now increasingly clear that NE trades in a well-defined 33-40 range. The longer this pattern continues, the more people try to anticipate it - buying a little before the previous bottom, selling a little before the previous top - until earnings catch up with expectations, of course.