Abraxas Petroleum Corp. (NASDAQ:AXAS)
An energy company engaged in the exploration of and the acquisition, development, and production of crude oil and natural gas primarily along the Texas Gulf Coast, in the Permian Basin of western Texas and in Wyoming.
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No, I didn't sell it. I tried to close and reopen to reflect my actual start price, but the market didn't cooperate, so I ended with a higher starting price than I had before. Actual starting price at this time is $2.79.
Maybe I need to stop doing this.:)
Still like them and expect to see some good upward movement after the Q2 results are posted.
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Bullish oil drillers
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Normally, a forward P/E of 10 at $3.12 for an estimated .30 cents in 2013 earnings up from .14 in 2012 means that you are receiving over 100% earnings growth at PEG of .20. I think $4.50 would not out of sight in the next 12 months, giving AXAS a forward P/E of 15. This is roughly 50% ahead of current prices. However, I hate that they have 126 million in long term debt and only modest sales growth of 59 to 65 million from 2010 to 2011. They also only had annual operating cash flow of only 24 million dollars in 2010 and 2011. This does not suggest a steady path toward debt reduction. My target is $3.50 or about 12% above current market prices.
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Going debt free with their upcoming asset sell in the eagleford will make AXAS debt free.
Couple that with owning their own drilling rig in the Bakken and the share price should double easily.
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recovery of oil prices
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i believe AXAS is up to speed in horizontal drilling technology and a likely strong consumer of gas fracking services in their bakken play.
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oil suffered badly the last month. Due for a big comeback
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Oil. Will get out when it hits $5.30.
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Based on past performance.
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We need oil,it's cheap right now
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Could drop down to $1.00. Won't come up until investor confidence returns.
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Covestor Model Manager Michael Arold sold AXAS in his Technical Swing Covestor Model ( http://covestor.com/Michael-Arold )
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Energy company with oil and gas in great locations.
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6 Feb. 2011-- Has positions in great locations including a well in the Eagle Ford.
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Oil runs the world.
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The Bakken and Texas wells have the potential to increase production by 30 to 50% in just the next few weeks. Worth $6 easy.
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