A few weeks ago, some commentors on Seeking Alpha decided they didn't like my skeptical analysis of SandRidge Energy. Their reasoning? The oil reserves of its newest acquisition would be worth more if the price of oil continued to rise. I love it when I'm right:
Granted, we're not into a double-dip yet, but I'm waiting for the next sovereign debt shoe to drop in Europe.
It's funny when hayseeds jump onto investment websites and complain that MBA-level financial analysis is gibberish. I guess some amateur investment "experts" think a new oil derrick out in the sticks is invariably a bullish sign. Hey critics, SD's long-term debt increased by $41.8mm in Q1. I'd like to see how they'll climb out from under that burden while the price of oil keeps falling. Their net realized crude price per barrel was almost twice as high as it was in Q1 2009, when they were hemorrhaging money, and they only eeked out a measly $0.01/share net income.
Full disclosure: No position in SD at this time.
Oil prices fell to near $73 a barrel Friday amid expectations a slower economic recovery in debt-saddled Europe will weigh on crude demand and rising U.S. crude stocks.
Granted, we're not into a double-dip yet, but I'm waiting for the next sovereign debt shoe to drop in Europe.
It's funny when hayseeds jump onto investment websites and complain that MBA-level financial analysis is gibberish. I guess some amateur investment "experts" think a new oil derrick out in the sticks is invariably a bullish sign. Hey critics, SD's long-term debt increased by $41.8mm in Q1. I'd like to see how they'll climb out from under that burden while the price of oil keeps falling. Their net realized crude price per barrel was almost twice as high as it was in Q1 2009, when they were hemorrhaging money, and they only eeked out a measly $0.01/share net income.
Full disclosure: No position in SD at this time.
