Stocks to Buy based on the Best Stock Market Research
Kodiak Oil & Gas (KOG) is one of the best small/mid cap oil stocks you can buy. The company drills for oil in the Bakken Shale located in North Dakota ( http://oilshalegas.com/bakkenshale.html ) where it currently has 155,000 acres.
Kodiak Oil & Gas (KOG) stock recently hit a 52 week high located at $10.41. Since that high, the stock has pulled back to $9 per share. While the chart doesn't look so good in the short term, KOG is a strong buy from here on out for the long term. I am hoping to get a pullback to around $7 or less by the summer of 2012. Historically, between August -September has been a great time to buy the stock. This doesn't mean the same will happen in 2012 so you might want to get your feet wet if we see the low $8's.
Kodiak Oil & Gas (KOG) is a volatile stock so you do have to be able to stomach the swings. Volatility can help you accumulate more shares though if you plan to trade it.
Here is a list of past, present, and future earnings
2010 - $0.03 EPS
2011 - $0.23 EPS Expected - $0.12 of that is expected 2/28/12
2012 - $1.09 EPS Expected
Revenue is expected to grow from $136 million in 2011 to $675 million in 2012.
With a stock price of $9.04. Kodiak Oil & Gas (KOG) is trading at 8.3 times 2012 earnings. I expect earnings to grow at a fast pace in 2013 and 2014 but not as fast as they did from 2011 to 2012.
By 2013-2014, Oil should be $120-$140 if not higher. Even if oil remains between $90-$100, I am sticking by my price target due to earnings growth alone.
KOG 2013/2014 Price Target - $20-$30 per share
I spoke about this in chat the other day but I wanted to put this on a forum thread for everyone to look at.
Replies to This Discussion
where would you look to reload?
Below $7 was a screaming buy, now whether KOG goes that low again is an open question. I'm not sure why people were selling down there but when people are scared and have money on the line, they do crazy things.
Well, KOG is back above $10 today for the first time in a long time. KOG has provided excellent trading swings for us over the years but I doubt it trades up to $20 in 2014. I'm looking for more like $12-$14. Earnings estimates came down to much so KOG has been a value trap. However, if you bought in the $7's and $8's last year and are still holding, you are looking good right now.
KOG can get above $15 on a buyout though! The $30 target which was at the high end was given in the event of any super spike in the price of oil. That has not happened yet.
KOG bought out by WLL for $6 billion or $3.8 billion after you factor in their debt of $2.2 billion. They have increased their debt over the years but this is still a 50% premium from when I first posted this article.
KOG is hitting a new all time high @ $15 - If you are holding, this is your chance to sell. The market is thinking WLL will raise their offer to $14.50-$15....take your $15-$16 now!
Sold today at $15.78. Was in this stock for a few years, originally at $8.72 and again at $10.29. I'm happy with those profits.
Awesome, that was a big gain for being patient over the years. I remember when people were selling for a loss in the $6's and I was calling them crazy.
That was a brilliant call by you a few years ago, Tim.
Thanks Terry! We'll see if YELP hits $190 at some point in 2016-2017. Yahoo (YHOO) might decide to buy it before this date range though.