Thanks for the well wishes. Does anyone else like the small E&P's that are heavy on gas? CHK, CRK, RRC, TMR held up well today with CHK near a breakout point. Also DNR came out today with good earnings. Some of these little guys have P/E's in single digits, but on the downside, all of them carry some bagage, heavy debt, less than stellar management. With NG holding above $3.00 the prospects look good. Any thoughts? Regards, Weather
time now....I guess we are gonna see steady and slow rises from here on out as I dont see NG pricing decilining what so ever! No big jumps because this category is just penalized all the time...but I just feel that it is going to happen consistantly up over the next year or two... my two cents worth..
I agree with you 100%, i don't think well see a big pop but slow and steady acculmulation in the gas E&P sector. It's hot across most of the country already and it looks to be a long hot summer ahead. When those peaking units start to get lit, there's going to be alot more consumption then most people think, and over the next couple of years, the trend is for even more summer gas usage. I think early money now is going to pay back big over the next few years. Regards, Weather
I've held RDC for 3 or 4 years now, showing a mere 14% annual gain, but it beats the losses I was sitting on for so long. I have a model I run my prospective purchases through, with inputs of earnings per share, eps growth next year and 5 years out. According to this model, with price of $29.31, this year's earnings of .70, earnings growth of 110% next year and 28% annually for the following years, RDC is one of the best buys of all the stocks I follow, including the internet and broadband communications sectors. I guess I'll hold it for a while longer. Of course, I've learned that in this sector, one can't expect a constant 28% annual increase in earnings, but there may be some upside surprises as well.