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Abraxas Petroleum Corp. Message Board

  • bogwa1406 bogwa1406 Dec 31, 2013 2:09 PM Flag

    Anyone who has ever looked at the chart on AXAS should be able to see that it is a volatile stock. It is a low cost

    stock with a decent daily volume which opens the door for day traders. AXAS stock price is going to always also has the potential to have significant up moves. It just boils down to whether you think the potential for move up outweighs the potential for a move down. In the broader view the company has positioned itself well financially, and they are presently being successful hitting good wells in an environment of good prices on oil and natural gas. In addition they have ample funding and non-core assets in both natgas and Duvernay that could be divested if advantageous. Those fundamentals weigh pretty heavily towards on overall climb upwards in valuation. In the near's been a hard winter in the core production I would imagine there is some apprehension as to whether there has been monetary impact...I don't know. We'll all know what's happening when the next production update is provided....but I tend to trust the guidance numbers provided that will put yearly average around 4900 to 5100 boepd which should make for a profitable year. AXAS is no different than any other E&P...they issue guidance on what is known. There may be acquisitions that could boost the boepd or divestitures that lessen the boepd....that's the world of E&P's. Good news can rocket the valuation and bad news can have it plummet. But there's good data available on the company, there's decent analyst coverage, it has a good balance sheet......basically there's enough quality information for an investor to decide if it's a dog that's going to hunt. I personally think it's going to hunt. Would I like for AXAS to be headed to the moon...of course, I would...but I also know what I invested in...I know it's going to gyrate on valuation. I can't tell for myself on what days it's going to rise or I just buy and each his own. If anyone is talented enough to know...they could get rich swing trading it...and many do and some fail. JMHO

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