Strong Follow Through

Our recent cycle of successive groundhog days have temporarily ceased with solid upticks over the last 3 trading days.   Oil saw a temporary bottom around $59 a few days ago and has bounced strongly off that mark into the mid sixties.     It has also helped that Exxon-Mobil reported some jaw dropping profits of $14 billion as well as some good news from our bakken plays as listed below:

  • Brigham Exploration Company (NasdaqGS:BEXPNews) announced three high flow working interest Bakken discoveries, participation in its first Anadarko Basin horizontal Woodford shale well
  • Continental Resources (CLR) stated its third-quarter net income soared to a record of $112.4 million, or $2.65 per share, on revenue of $388.4 million which is up 135% from same quarter last year.   The news sent the stock up over 10% today
  • Basic Earth Science Systems, Inc. (Basic Earth) (OTC Bulletin Board: BSICNews) announced that its Board of Directors has authorized the repurchase of up to 500,000 shares of the Company’s outstanding common stock over the next 18 months.  This is quite unusual for a company of this size and signals that the mgmt of the company feels strongly that the stock is undervalued.
bakken Edit
Symbol Last Trade Change Volume Avg Vol (3m)
NOG 1:03PM ET 4.74 Up 0.18 Up 4.06% 132,642 367,429
WLL 1:05PM ET 47.85 Up 6.85 Up 16.71% 1,965,892 1,342,220
SM 1:05PM ET 23.21 Up 0.92 Up 4.13% 423,417 1,271,550
MDU 1:05PM ET 18.55 Up 0.85 Up 4.80% 764,356 1,442,780
GEOI 1:04PM ET 12.82 Up 0.41 Up 3.30% 41,570 130,341
BSIC.OB 12:02PM ET 0.90 Up 0.08 Up 9.76% 2,500 38,635.9
WSEG.OB 9:52AM ET 0.12 Up 0.01 Up 9.09% 3,700 573,402
CLR 1:05PM ET 28.40 Up 2.76 Up 10.76% 1,256,084 2,248,770
BEXP 1:05PM ET 6.99 Up 0.55 Up 8.54% 433,091 1,027,970
KDKN.OB 12:30PM ET 0.60 Up 0.08 Up 15.38% 640,041 95,348.4
KOG 1:02PM ET 0.71 Up 0.00 Up 0.11% 181,168 1,038,580
EOG 1:05PM ET 75.01 Up 2.43 Up 3.35% 2,558,985 4,877,390

Groundhog day

Every day since the financial crisis essentially feels like groundhog day.   I log into my account in the morning and my oil stocks are a little up or flat.  I log in later in the day and they are down dramatically.   The price action here is nauseating and i’m figuratively and literally sick of it.     There was some hope today with OPEC potentially cutting output but recession fears weighed in on all stocks and we were again saddled with 5% plus losses across the board.    As i have stated in my previous posts the best thing to do is to sink a fixed discretionary chunk into bakken stocks and don’t check your account for 12 months (I don’t have the will power but maybe you do :).       Good luck to all of us…we definitely need it….

bakken Edit
Symbol Last Trade Change Volume Avg Vol (3m)
NOG 2:29PM ET 4.0400 Down 0.0100 Down 0.25% 119,901 391,726
WLL 2:30PM ET 37.32 Down 1.42 Down 3.67% 858,243 1,322,440
SM 2:30PM ET 21.89 Down 1.62 Down 6.89% 1,102,208 1,283,690
MDU 2:30PM ET 16.79 Down 1.13 Down 6.31% 1,090,910 1,373,620
GEOI 2:29PM ET 10.86 Up 0.34 Up 3.23% 49,633 134,250
BSIC.OB 12:15PM ET 0.85 0.00 0.00% 16,440 38,635.9
WSEG.OB 1:30PM ET 0.11 Down 0.01 Down 8.33% 90,282 655,561
CLR 2:30PM ET 21.03 Down 1.70 Down 7.48% 1,408,828 2,257,070
BEXP 2:30PM ET 6.15 Down 0.36 Down 5.53% 551,802 1,065,580
KDKN.OB 2:21PM ET 0.60 Up 0.03 Up 5.26% 10,885 95,348.4
KOG 2:29PM ET 0.70 Down 0.10 Down 12.55% 294,514 1,017,220
EOG 2:30PM ET 61.97 Down 4.06 Down 6.15% 3,399,976 4,861,610

Back in business

I have not written any articles in the past 3 weeks or so because there was simply nothing positive to write about and I was frankly sick of the gloom and doom.   I believe now with oil imploding to $70 a barrel we are really at a point where the downside is another $10-15 at MOST and we HAVE to be forming a base of some sort.   Our favorites plays WLL and CLR have been absolutely decimated and are at levels that most of us haven’t expected in our lifetimes.    At this point I am content to sink a few thousand in a basket of our favorite plays (NOG, BEXP, EOG, CLR, WLL, SM) and let it ride for the next 12 months.

bakken
Symbol Last Trade Change Volume Avg Vol (3m)
NOG 1:04PM ET 4.46 Up 0.63 Up 16.45% 206,748 411,215
WLL 1:05PM ET 41.46 Up 4.62 Up 12.54% 931,404 1,304,240
SM 1:05PM ET 24.02 Up 1.72 Up 7.71% 316,990 1,348,350
MDU 1:04PM ET 19.771 Up 0.321 Up 1.65% 875,003 1,330,770
GEOI 1:03PM ET 9.63 Up 0.80 Up 9.06% 68,487 136,280
BSIC.OB 12:44PM ET 0.80 Down 0.13 Down 13.98% 8,091 38,635.9
WSEG.OB 12:16PM ET 0.115 Down 0.005 Down 4.17% 114,148 727,261
CLR 1:05PM ET 26.20 Up 3.28 Up 14.31% 1,045,576 2,225,300
BEXP 1:05PM ET 7.00 Up 0.57 Up 8.86% 426,435 1,128,710
KDKN.OB 11:30AM ET 0.65 Down 0.02 Down 2.99% 11,495 95,348.4
KOG 1:04PM ET 1.15 Up 0.20 Up 21.05% 1,502,596 1,016,370
EOG 1:05PM ET 75.08 Up 5.98 Up 8.65% 3,276,782 4,797,270