Consensus estimated earnings two years from now is a minus 2 cents. That consensus is based on oil being back near $65 / barrel. Conclusion - APA is trading on hope and change. As an alternative Investors may want to look at the various stem cell biotech companies or internet start ups for better return potential.
.. his opinion for an OXY APA merger was just a viewpoint and has no basis in actual talks. Pretty similar to other points of view both up and down on this message board. Guess we should listen to his opinions as he has the power to move the market.
Anadarko was in talks with APA when WTIC was in the mid $40's. No other offer has been made. Omar Mawji wrote an op. ed. case for OXY buying APA last month, but the case is no different than any case made on these message boards. All just opinions.
Good story to read for those who cling to the notion of a buyout - including the Folks at Zacks!
Negative earnings and negative earnings projections translate into a wildcat speculative stock. Energy prices need to get back and stay back to last years level. I don't see that happening. With the recent bounce in energy prices APA will now increase production, just like their competitors. This will put a damper on further energy price increases and unfortunately lead down a continued path of negative earnings reports.
Rather than a stock price based on solid underlying earnings, APA, like the whole North American energy sector will have their stock valuations based on hope and change. This is more akin to a biotech stock with negative earnings but lots of promise. Reality eventually sets in.