I’m not giving up on any of the long-term energy trends that I pointed out and traded successfully in 2013, but I do believe we’ll need more nimble moves to generate wins this year compared to last. I just don’t think I’ll find many deep value stocks like Noble (NBL) or Cimarex (XEC) with 30% or more quick potential upside this year.
So let’s make a start to the New Year with one quick trading opportunity I see: Apache (APA).
Apache has been a stock I’ve liked to circle back to often, as I think they have one of the strongest technical E+P teams out of the independent oil companies I follow. It’s certainly not, however, had the best luck in the assets it’s owned through 2012 and through part of 2013, as much of it’s share price was tethered to the 17% of assets associated with Egypt, a continuing political disaster. Those assets, as well as a (so far) unremarkable effort in leased acreage in Alaska kept Apache looking like little more than a ho-hum loser of an oil and gas stock through much of the last two years.
But since hitting a low under $70 a share in the Spring last year, Apache has made some interesting and positive moves, including divesting much of the Egyptian risk to Sinopec in China and purchasing fire-sale assets in the Permian basin from BP (BP). While these were not game changing for the company, they have both helped the Street reevaluate shares…