The Company – Apache Corporation (APA)
Apache is engaged in the exploration, development and production of natural gas, natural gas liquids, and crude oil. Diversification is Apache’s strong point. Its business operations of production and exploration are being conducted in six countries; United States, Australia, Argentina, Egypt, United Kingdom and Canada. In North America, its operations are being overseen in the Gulf Coast, Permian Basin, Western Canada, and Central United States.
Accurate Forecasts (plus) Patience waiting for Conformations (equals) Results (Profits). This simple formula F + C = R is how I go about making money for myself and my Clients. The below Valuation of my raw data plus many comparative calculations has been very reliable and profitable for many years. It requires long hours of hard work and experience to know when to “tweak” the data.
You might consider reading my article on “My Methodology.”
Table: Professor’s – Current Valuation for: Apache Corporation (APA)
Table: Professor’s - Report Cards for Apache and Selected Peers
Two Year Chart for APA, S&P (SPY) and above mentioned Peers
How come RRC is the only one to “out-perform” the S&P (SPY – green)? I can tell you “Why.” Remember: You have got to have the “What” and the “When” – but without the “Why” you are asking for losses! Each of these Companies are precisely where they are based on my archive of Fundamental - Valuations and Technical Analysis for each Company.
Twenty Year Chart for APA with S&P (SPY) as a Reference
I suggest that you take a long look at this 20-year chart. Having a longer-term perspective of a possible future investment will always give you a more consistent bottom line. For a larger view click on APA.
The General Market is currently “Fundamentally” overvalued and “Technically” overbought, and its “Consensus Opinion” is much too bullish. “Insiders” are selling and “Interest Rates / Dividends” are on the rise.
This does not make for “Investing Wisely.” This means that you must consider holding Cash or perhaps taking bearish positions in the coming time-frame. (Taking Bearish positions are for Pro-Active Investors Only!)
My analytic focus and logo is “Investing Wisely,” e.g. taking advantage of the Bullish / Bearish Cycles as they occur within the overall Marketplace. Integrating conservative fundamental analytics within these technical cycles means maintaining a process of the thorough and on-going analytics of many companies, sectors and industry groups. I have maintained such a Profitable Discipline for over 50 years, and it has been very good to me and my Clients.
Professor's Opinion of Apache Corporation
APA has not been a very strong / performing Company (price-wise) over all of these many months. The current price is down 36% from the highs in July 2011. I continue Forecasting that both APA and my selected peers will be under moderate to severe pressure in the coming weeks and perhaps longer.
This is a Warning about buying or holding Apache.
I am also Bearish on the World Economies and the General Markets. I suggest that holding Cash during questionable time frames is a prudent and wise choice. (Folks - This is definitely a "questionable" time frame)!
You may want to “bookmark” this Hyperlink for quick access of my published articles here in OilPrice.com. Just Click and scroll down past my Biography. Thanks!
Smile, Have Fun – “Investing Wisely,”