oil analysts say buy, insiders sell - Barron's Online
According to the Barron's Online, energy stocks have doubled and tripled in prices the industry over the past year. After such an appreciation, insiders are selling shares and taking profits even as analysts still have Buy ratings on many stocks. "[Insiders] have been bailing out for now 4 or 5 weeks; on the other hand, analysts think it's the best thing since sliced bread," says Michael Painchaud, of Market Profile Theorems. Equity analysts say mkt fundamentals trump insider selling behavior. "It is pretty natural to take advantage of high prices, it's not necessarily an indication [of] prospects," says Michael Scialla, of AG Edwards. For example, he is bullish on Quicksilver Resources (KWK). In the short-term, energy stocks could slip if rising interest rates, warmer winter weather and consumer spending. But, "the relative performance is likely to continue, albeit at a lesser intensity," notes Fadel Gheit, of Oppenheimer. Still, insiders have ramped up their selling at co's that Gheit has Buys on. Some of these co's are: ExxonMobil (XOM), Apache (APA), Frontier Oil (FTO), Sunoco (SUN), Tesoro (TSO), Comstock Resources (CRK), EOG Resources (EOG), XTO Energy (XTO), Occidental Petroleum (OXY) and Pioneer Natural Resources (PXD). |
