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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I believe they finally have gotten costs under control and have recently strengthened their balance sheet. I like the direction they are heading. Now if only the stock price will do the same..
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Set up for Buy Out from larger firms. Eagle Ford and others drilling areas are on fire and red hot. Price will go up when two compete to buy strong managed Abraxas. LNG is the next big Energy and AXAS is flush.
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Risky - However, insiders are buying and the outlook for 2013 and beyond looks favorable.
Complete your own DD.
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Good entry point IMO
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A buy at this price.
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The stock looks cheap and likely to continue rebounding. Analysts expect earnings to grow nearly six-fold between 2012 and 2013, and that growth could continue as new wells come on line in the near future. Some analysts have price targets for Abraxas shares at about $5, which could provide investors with a double, based on current prices.
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built around strong acreage and assets - it will come back
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Closed and re-opened to more accurately reflect my actual starting price.
I bought a lot more on this "ridiculous drop", which was engineered by less than one half of one percent of the outstanding shares, manipulating the price, after they had a delay in achieving the sale of the joint venture due to a drop in oil and gas prices.
This price is significantly less than the value of their PROVEN reserves, and over the next 6 to 9 months they will be reporting a lot of positive events that will make it apparent just how underpriced this stock currently is.
They are ending the joint venture and dividing up the assets, which will allow them to increase their borrowing limits, as well as make their accounting much easier to understand.
They will be reporting news about their Balken wells, as well as their Canadian properties, both of which should be very positive.
In the meantime, since almost all of their properties are held by production, they do not have to spend cash, or drill new wells, that are not advantageously timed for them.
In the longer term, this will pay off big for those willing to take the time to understand where they are, where they are going, and willing to take a position at this very low level.
JMO and worth exactly what I am charging for it.
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Bullish oil drillers
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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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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. 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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