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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (38178)11/14/2010 10:22:04 AM
From: Grantcw  Read Replies (1) of 78476
 
Hello Madharry,

Are you still in SD? I'm considering starting a position in this stock, but wondered what your thoughts were.

I guess I'd like to add to CHK or start positions in SD or BEXP. These natural gas plays are seeing some acquisition activity but are still at low stock price levels. I'm not sure if Natural Gas prices will go higher, but I like the fact that companies like CHK and SD are moving more into Oil drilling as the price of oil goes up and ng goes down. That should help the earnings of these companies as well as help the price of ng itself if enough drilling switches.

Any thoughts on this? I already own a bit of CHK and I'm not necessarily super excited to add more there. SD has a lot of debt from their recent acqusition, but also a lot of oil. I think, for example, that SD is producing oil per day at around the same rate as ATPG is now.

Thanks,

cwillyg
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