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Strategies & Market Trends : The Aristocrats (tm) -- Ignore unavailable to you. Want to Upgrade?

To: sense who wrote (2358)	5/12/2021 4:04:49 AM
From: sense	Respond to of 5766

SBOW Swang by Finviz for a quick look today... Found a commodities stock on the their list of % gainers... which I found shocking... No, not gold or silver... SilverBow Resources... is an over-leveraged Eagle Ford fracker. It is one of a type I've pointed out but been remiss in following up on... When I was buying midstreamers and producers in March and April 2020... the best picks were midstreamers that cut the divvie... which was followed by a slashing in the share price... still giving huge double digit yields after the crash... The better companies didn't cut at all, or only throttled back a bit to accelerate paying down debt given the market risks. Those at greater risk had to suspend the divvie to focus on debt reduction... But, they're huge cash generators... so doing that allows them to cut debt amazingly fast when prices start to rise again... The first round of oil patch consolidation is ongoing... As that continues, you will begin to see companies that got slammed by their huge debt loads during the crash... suddenly starting to look pretty good again. And, the midstreamers at least... are likely to restore dividends in time... once the debt is made manageable. Haven't dug into the specifics on SilverBow... but the timing is about right... I'll guess its one of those "paid down enough debt" stories... which is probably why its almost doubled in the last month... ? Looks like time to shop for recovering debt addicts in the oil patch...