Unit Corp (NYSE:UNT)

CAPS Rating: 4 out of 5

The Company is engaged in the land contract drilling of natural gas and oil wells, the exploration, development, acquisition and production of oil and natural gas properties and the gathering and processing of natural gas.


Player Avatar Randseed (34.77) Submitted: 5/17/2010 6:10:40 PM : Outperform Start Price: $41.21 UNT Score: -89.38

UNT is for some reason a cyclical stock. You just have to time correctly. That said, it is a great company, and I've made a fair bit of money buying it in the 40s and selling it near the 60s. Eventually there will be a breakout, and it's going to stay up there and set a new floor.

Member Avatar GeneInDesert (< 20) Submitted: 1/1/2011 8:22:06 PM
Recs: 0

Re 'for some reason a cyclical stock' - I've had a little UNT since June 2007. I wanted some exposure to the energy sector and picked them. Paid $64.65 - seemed like a good idea at the time - and since have seen it go a little higher and much lower. IMHO, the price of UNT is highly dependent on the price of the underlying commodities, oil & gas. In June 2008, oil and gas were both high and UNT was over $80. When oil & gas came down, so did UNT. Now of course, gas is cheap and looks like it will be until you and I are past caring. Oil has gone up some, and UNT has come up some with it.
I am looking at UNT now because I was thinking that I might put a trailing stop under it. At some point oil will stop going up, and if it goes down again, UNT may do the same.
However, looking at UNT, I see that they have converted most of their rigs to horizontal. And I also see that their mid-stream unit is positioning itself as a leader in nat gas processing and transport.
So I like what UNT is doing re nat gas, and at $46, I will not do the trailing stop, and will hold for a while longer to see if the company can make some money from what I expect to be increased use of nat gas in the U.S.

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