Obama, Kerry and Euro leaders are all a bunch of libtards, they want to eventually get Iran released from all the sanctions so they can spend the $100+ billion that is locked-up (due to sanctions) in our corresponding economies. Iran wins! If you don't see that you are blind. It won't be long before all the trade/oil supply and distribution channels to Iran are flowing like water. Ever since Obama's "redline in the sand" failed we've been sucking-up to the Iranians (negotiating). Israel and Saudi Arabia are the odd ones out. Obama and his loyal "brotherhood" friends are making soft policy for "the money", while we hang our only friends in the region out to dry. Shameful. Oil going to $60/bbl in 2014 and U.S. stays hooked on foreign oil. Israel will protest along with Saudi Arabia, but it will fall on deaf ears. European and U.S. leaderships want Iran to spend the money that is frozen in our economies, plain and simple. Lower oil prices will be good (short term) for U.S. economy and Hillary can take credit for U.S. policies that led to it. OMG! Americans are so stupid they will probably buy it.
This is one of the more bullish technical formations resulting in a big UP move.
SD is going to stay under pressure until next year and we start seeing some "surprising" and positive developments. Capex is still 2.5 times cash flow, but the metrics are steadily improving. Next quarter will be much better on the production side.
SD didn't bring 12 wells online because the infrastructure capacity was maxed-out. There is going to be too much nat gas (supply) for a long, long time. Does SD have an equity position in a nat gas export terminal?...NO! Chesapeake does. NG exports may provide some support for nat gas prices where they currently are, I think $4-5 nat gas is still a ways down the road.
You day traders who trade on technical data amaze me, I hope you do well "jacking" in and out of stocks, it just never worked for me. I am sticking around for earnings and right now I am feeling they will justify a higher valuation. I might collapse my position in the 7s, on a spike, giving myself more time (next quarter) to get back in. Trading in a 10-day window carries too big of risk of getting whip-sawed.
Most producers have hedged their production. Recent price swings won't have a material impact on earnings. Production improvements is still what everyone watches, not the small price swings.
I am not wishing for more SD Permian exposure. In my view, as oil prices fall (due to increasing supply) I don't want SD invested in the very costly wells of the Permian. Yes, the oil is there, but it isn't cheap to produce. $85/oil will be harder on the profitability of Permian wells than it will be on the lower cost wells in the Miss.
Based on your opinion (above) you should be shorting SD. I AM NOT SHORTING THIS STOCK (SD) here. I don't put an $8 target on SD near term, that number ($8) will require greater successes in the Miss. If earnings reports are hot thru the May14 report, $8+/share will be a "snap". The energy space is bad place to be shorting. If you want good shorts, go look somewhere else, where valuations are sky-high on investments from Fed money.
I believe we will see 'shorts' hanging around thru earnings, but if the earnings are hotter than expected, that should 'flush' them out. I think buyers could carry the stock above $7 easily on strong earnings, maybe even to $7.50 level. $8/share for SD would be a stretch, maybe next year. It seems to me, as long as Obama is Prez, he will act like a tax on domestic economic growth and causing continued uncertainty, keeping M&A activity for companies like SD at a standstill.
The "momentum Gods" are GOOD!.........until they aren't.