Ultra Petroleum Corp. (UPL)

.6

low relative PE, good star & 2010 earnings. Bottom fishing week of 10/26.

growing earnings/growing assets

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

oil drilling in the US, not dependent on Foreign crude

New oil reserves have been found. UPL is in a crowded field of gas providers. Management needs to continue holding down costs and maintain reserves.

This winter will determine how gas reserves are used - plus any drop of production by other companies will result in a spike in prices.

Debt reduction, stock buy backs. A cold winter or a Georgian like faux pas could propel it like a siberian white night.

guy on dip

Good gas reserves and has good acreage position in two strong gas plays. Finding costs have been on the low side for the industry. I believe natural gas prices will go back up and this stock will respond accordingly.

Lynch style

a nimble and profitable small company in the oil patch. Prepared to adapt to and provide energy needs going forward. Good entry point here.

Following the pros

Look for UPL to beat estimates as forward hedges lock in profitability that the street will reward in share price appreciation.

I feel good about natural gas.

Nat gas is a great resource that the US A has in abundance, and we need to be tapping more heavily into it, both for all the ongoing corporate "green initiatives" (it is a "green energy source") AND for our (beginning) energy independence initiatives......

Looks like a great play no matter who's in office next year....

It has stronger financial fundementals than CHK and you could make a case it's better managed company as well, with better properties to boot (that it shouldn't have to sell off at firesale prices to raise emergency capital). Their marginal cost of production seems so much lower that their competitors.

The only negative I see here is it's lack (currently) of a dividend. I'll give that up for it's upside though.

gas is cheap. How long do you really that will last?

Trying to ride a trend.
(Always dangerous in CAPS - damn 7 day rule!)

buying spree - I'm picking up anything near 52 week lows, especially commodities that have been crushed.

I don't like the negative free cash flows for most of the last several years, though the primary reason seems to be related to capital expenditures (I need to read the SEC filings). Nonetheless, the stock seems poised for a rebound (with a short-term target of about $60). Its a Cramer pick, fits in with the Pickens alternative energy plan, and the CEO indicated that the company makes good money even with the price of natural gas around $6.