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
Bought in today at 8.9..a little higher at the end of the day but I will buy more on a dip
KOG appears to be resuming the recent downtrend. Earnings are due out February 28, 2012 after the close. Support is located at $8.65.
Tim, you think it's going to be near or below 8 near term? This downtrend seems a bit too long. It almost oversold territory, but it keeps going down.
It's really hard to say, earnings will be a big mover. The 200 day moving average is down at $7
I'm looking to get into KOG for a long term hold this summer. They had hedging problems in the past and so i wouldn't be surprised at a miss this quarter. Long term it has great upside potential. Even with a low estimate of 1.22 EPS for 2013 with a conservative 10-12x multiple you're looking at a nice $12-14 pt. I'd be a buyer below $7
That's what im worry about, a bit of hiccup with earnings, KOG will be down a lot more.
There's no guarantee of a drop, depends on your risk/reward profile. If you're worried about it running away, maybe buy 1/3 or 1/2 a position now and wait. If it goes up at least you can ride it a bit. Otherwise you can avg down afterwards. If KOG paid me a dividend I would gladly go in now and risk waiting
im already in since Nov. Ave $8.30ish. Why didn't I take profit when it was over $10, I don't know. Im holding it and will add more if it goes down.
KOG Earnings come out February 28, 2012 after the close. Estimates came down a little, between $0.10-$0.12 ear expected. I think it's actually $0.10. Last year the company had some hedging which hurt earnings. I think the weakness we are seeing is anticipation of this and the fact that they stock is below It's 50 day moving average. I am hoping for a retest of $7 this year so I can really load up.
I got at $8.66, I guess I should of came back here before ordering, I could sell now for a profit, but I my balance is below 25k on my account, so I have to wait till tomorrow.
Can anyone answer this
I have a question on the recent secondary of shares issued in Nov 11 when is the lockup of those shares up? . I would go a long with a chance of a miss on earnings, but with average per barrel prices up in 2011and better than expected weather = better field working conditions hence guidance might blow them away Iam long with cost average of 9.3 and will be adding more