I have been looking at DVN also. On June 21, (granted eons ago in market terms) Devon's Director Ricciardello, invested $20,004.60 into 360 shares of DVN, for a cost per share of $55.57. Not a huge investment, but no insider sales to be found either, so apparently she is still happy with what she sees for the future.
There are a lot of issues, granted, but at this price is it a falling knife, or a ____bagger in a few years? That's the question:) Third quarter earnings were indeed disappointing, but it has been spanked accordingly it seems. The report wasn't all bad either. I am not an expert at this, but it seems like Devon, created $1.9 billion of operating cash flow during the third quarter, and its financial position is still relatively strong. Devon ended the quarter with $7.5 billion in cash.
Also, according to the CEO, US oil production which is their highest margin product, grew 26% in the third quarter, and that was driven largely by success in the Permian Basin.
According to Yahoo, forward PE is 12.01 and a price to book ratio of 0.98. Yes, that assumes some things, but with a cold winter, isn't this a good shot here? |
