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Denbury Resources Inc. Message Board

  • Maestro208 Maestro208 Jul 8, 2008 7:35 PM Flag

    How about DNR, folks?

    What's going on with this stock??

    Oil moves up, and it goes down? My gains are now losses. Bummer.

    What do you foresee with these guys going forward?


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    • Peter,

      So, is this a case of "When in doubt... go without" to you? ;)

      * I'm teasing myself with thoughts of Concentrated Money in this sector vs. spread out the way it currently is....

    • Maestro,

      This is a company that has absolutely performed as to plan for many years. It isn't the cheapest of E & Ps by any metric but it has an extraordinarily interesting and productive niche. In fact, there really isn't another like it. Management of the company is very honest, very hard working and very smart.

      If you believe in oil, you own some DNR.



      • 2 Replies to pddane_01929
      • Thanks for the reminder, Peter. I'm just curious because I'm wondering whether moving my oil money from DNR and adding to either PBR-A or SPN would be a better idea. What do you think? (These are my big three - I've been staying away from the big 'refiners'.)


      • Like several other stocks in the sector, dnr went down (over the last week or so) and bounced off its 200 day moving average. Assuming the bottom of this correction was put in yesterday, yesterday would make the 4th time this year that the 200 dma acted as support for the stock price.

        The petroleum industry isn't the only one where stocks will decline first, off of a high peak, before the underlying commodity, product, or service declines. For example, they say that gold stocks "lead the metal".

        This is the opposite of what one would expect. How does the oil stock 'know' that oil is about to correct? There are a lot of plausible explanations, from conspiracy theories to buying exhaustion theories, and so on. For example, if a hedge fund(s) is long oil futures and has a massive profit, they could short oil stocks as a way of squaring their position, as it were. Then, they sell those oil futures causing the stocks to drop further and they make a 2nd round of profits on the same trade.

        This would require massive collusion of many hedge funds, which couldn't possibly happen in this country, what with the highly competant SEC overseeing the financial markets and keeping everything above board, lol. BTW, I have some ocean front property in Arizona, cheap. IMHO, pipe

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