Only vaporized if sold. The traders love this stuff. Fear is a great tool for them. I sleep well having DVN as my largest position.
Not paying down debt and chosing to buy back shares was a poor business move. The debt is high and the cash flow, though strongly positive, has been decreasing rapidly. The fact that this industry should turn around soon and this time management intends to pay down debt may not be good enough for some investors. If the industry turns around soon and management does pay down debt this is a very good value play. But as all stocks go in the market there are reasons for buyers and sellers.
This is all true but even more important is that oil is going up, NG is going up and DVN will continue to go up well into next year. My biggest difficulty is in not taking profits. Way too early to harvest. Maybe when oil is in the $70's?..
Actually OPEC losr 438 billion last year which was much more than their 349 billion dollar estimated loss. They lost more this year as oil was in th e$20 range for the first part of the year. $60 oil this year is no longer a possibility, it is a probability. This is in spite of BREXIT (IMHO).
Now wasn't this the stock that recently got 2 upgrades? One for a $9.50 target price and the more recent one for $10. The traders are holding this down for now. Part of the deal when investing in the market...
Big time. Oil under $50 is not sustainable for them or most anyone else. Patience is key here but we can only go up. Oil to me is the safest place to put my money at this time..
I increased my position in SYRG just now. The sell-off to this degree is unjustified. Yes oil is down and uncertainties abound, but oil can't stay below $50 forever, and NG is still going up..
You are correct. But I am now heavy into ASC which should travel very much in line with STNG. Believe me this was a very tough choice as I like both stocks very much.
I don't have the patience but suffice to say that if you think NG has peaked and that DVN made a mistake by effectively trading non core assets for their stack assets, along with your assessment of their financial position, which is for better than 90% of the other players in this space, that you are misinformed.
Do you have any depth of knowledge about this company and why it is one of the best energy stocks in the market? Yes it is all about the numbers but within the context of the business reality for the company. This company has the best oil plays and NG plays in the country. NG prices were up on Friday because it is still, for the moment, essentially only a domestic market, unlike oil. I suspect you are a trader. That's OK. But real money is to be made holding DVN and in spite of the 8% sell-off on Friday it is one of the safest places to put your money today.
Those with supportable dividends in a chaotic world should be going up, not down. I have limited funds and after buying more STNG shares and then selling them on Friday I ended up buying more ASC with fresh money from dry power. It was a tough call as I like both stocks. ASC is a better take out target because its fleet is more uniform but at these valuation levels both are well oversold. I am not sure how much more fresh money I want to put in this crazy market because as we all know things that don't seem to make sense are happening presently.
Oh, I forgot to say that I agree with your assessment. DVN is half NG with has nothing to do with anything foreign. A 4 or 5 % selloff may have been justified, but this was too much..
Uncertainty is one factor but the stronger US dollar in relation to the EURO is another. DVN was not the only company hit. Many holders of the stock are significantly ahead and decided to grab their profits before they vanish. The truth is we may, or may not, see more panic style selling on Monday. But my plan is to wait this out. Oil demand is growing and the supply is slowing. I am confident that over the year it will all work out.
At this price level I like ASC even better than STNG. They can support this dividend easily in a market where interest income is paultry. I decided to add here to my purchase from 2 days ago. When the market figures out that this solid dividend stock has become more valuable and has been sold off I expect the price to rebound.
Don't get me wrong. I am not a Trump supporter. His mouth is too big and stupid, he is obnoxiuos and he has no depth on any issue. Though Hillary has often used poor judgement and appears to be an extension of Obama who has hurt our county in many ways, particularly in foreign affairs. She also both feels like and acts as if she is above the law. So I am not a fan of either - I am neutral - But based on BREXIT I feel Trump will be elected. The ramifications for the oil and natural gas industry are enourmous. Energy stocks will go up double what they will go down today. This event is only a half a year away. Think about that before you sell any energy stocks...
My aploogies but I decided to not bring new money into this market so I sold the new shares at a very small gain and kept my prior position. I want to see how this BREXIT plays out. Sometimes the full effect of a material event takes a few days. I still see STNG as a value play but I like to keep a good amount of dry powder on the side...
The BREXIT is actually good for this industry. Interest rates are going down. The dividend is worth more (IMHO).
I did not know if this traunce would ever happen. If STNG goes to $4.11 that may be my next traunce but based on the fact that I don't foresee how this can happen I suppose I probably now have my full position in STNG.
Also note if it is worth holding, it is worth buying. I don't believe in holding stocks that I would not buy at its current price.