Mad Money recommends Apache here is our take
Apache Corporation is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. In North America, the Company's exploration and production interests are focused in the Gulf of Mexico, the Gulf Coast, East Texas, the Permian Basin, the Anadarko Basin and the Western Sedimentary Basin of Canada. Outside of North America, the Company has exploration and production interests onshore Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea (North Sea), and onshore Argentina. More from Reuters »
Earlier in the year, Cramer highlighted it as one of his $80 to $120 stocks. That is the type that you find at $80, and it tends to go to $100 before rising all the way to $120 in a bull market, he said.Cramer likes Apache because it is one of the few companies that believes in expensive oil. It is the king of real growth in the oil industry, he said, noting Apache's oil production was up 9% during the third quarter. By contrast, Exxon Mobil (XOM - Cramer's Take - Stockpickr) doesn't have any growth, he said.Compared with other oil companies, Apache isn't locked into any delivery contracts and is free to sell oil at sky-high prices, he explained. That's why it had the best "blowout" quarter and "single best conference call" of any oil company, he added.
There’s another catch: The effort to extract the gas makes sense at current market prices, but if those prices dropped 20% to 30%, the new discovery would be “possibly a marginal play,” Farris said. Even though the news may not be bankable yet, Cramer said that Farris is – and so is Apache: “This remains the best single natural gas play in the world.”
We forecast that the Gas price will continue to see an upward trend for another quarter and that will mean higher profits for Apache in coming months. Even though, the stock is trading around its 52 week high it is still a good buy for coming months. However, we do not recommend this stock for lazy investors. This stock will deliver significant profits in 2nd or 3rd quarter.
Here are the key devlopements
Earlier in the year, Cramer highlighted it as one of his $80 to $120 stocks. That is the type that you find at $80, and it tends to go to $100 before rising all the way to $120 in a bull market, he said.Cramer likes Apache because it is one of the few companies that believes in expensive oil. It is the king of real growth in the oil industry, he said, noting Apache's oil production was up 9% during the third quarter. By contrast, Exxon Mobil (XOM - Cramer's Take - Stockpickr) doesn't have any growth, he said.Compared with other oil companies, Apache isn't locked into any delivery contracts and is free to sell oil at sky-high prices, he explained. That's why it had the best "blowout" quarter and "single best conference call" of any oil company, he added.
There’s another catch: The effort to extract the gas makes sense at current market prices, but if those prices dropped 20% to 30%, the new discovery would be “possibly a marginal play,” Farris said. Even though the news may not be bankable yet, Cramer said that Farris is – and so is Apache: “This remains the best single natural gas play in the world.”
We forecast that the Gas price will continue to see an upward trend for another quarter and that will mean higher profits for Apache in coming months. Even though, the stock is trading around its 52 week high it is still a good buy for coming months. However, we do not recommend this stock for lazy investors. This stock will deliver significant profits in 2nd or 3rd quarter.
Here are the key devlopements
Comments
Post a Comment