Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (65858)	5/8/2000 6:54:00 PM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

NEV is correct.... the kicker is - They've been severely penalized for their poor hedging (as they should have been)which is coming off. Their pure mathematical leverage to the sustainability, let alone rising price of crude makes their valuation and future upside here compelling. They are getting some institutional buying interest - Nat Gas got the spotlight (deservedly)here of late; Crude could once again become the story (can you imagine $30 crude AND $3 Gas !) - NEV is leveraged like no one else; is buying back stock and has some nice drillbit upside. LEVERAGE has been their anchor - BUT !~ in this commodity price environment - LEVERAGE finally gets to show the shiny side of its double edged sword. Look at NEV's run back in 1996-7 - in the last crude boom - a monster stock. NEV ran from $20 to $60ish in a non-stop run. It ran because of its Crude Oil leverage - now 92% !Crude Oil (proved reserves) - this is the Oily - "Ying" to THX's Gassy - "Yang" play. This stock will once again become THE proxy stock for crude oil - as its poor hedging expires. SSB just upped (doubled - with still poor hedging coming off here...)earnings estimates to: $1.13 eps 2000 & $2.57 2001 eps !!! - That's some strong eps for a $18 stock folks ! ..."doubled" EPS estimates and the stock is 20% less today then when it had the old estimates instituted ~ $5.00 - $5.99 cfps estimates for 2000-2001 = 3 - 3.5 x cfps STRONG drillbit upside in hot West Africa & other offshore projects. Their upside cash flow in this commodity environment may also be used to clean up their balance sheet. Numerous Buy Ratings & Consensus 12 mo targets of $22-$25+ here presently. Very, very leveraged to ea $1 move in crude & the board just approved up to a 1 Million share buyback. This stock is one of the VERY FEW that still has over 30% upside to its prior 52 week high - it WILL fill that gap; bank on it. This is the type of stock you can rotate into after taking profits off of a nice one day pop on a momenteum favorite that is beginning to look pricey. Just like THX; I like these companies that have signicant eps - $2.50+ is compelling for a $18 stock.