Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Sandridge Energy
So what: Yes, you read that right, great earnings and the stock plunged. Sandridge's revenue doubled to $364.8 million, and earnings per share spiked to $0.42. Adjusting for one-time items, the company broke even when analysts were expecting a $0.03 per share profit.
Now what: Management also increased 2011 guidance to 24.1 million barrels of oil equivalent from a previous guidance of 23.3 MMBoe. This seems like a bit of an overreaction, but that's just the kind of week we've had on the market. I would love to say this is a great buying opportunity, but there may be more downside based on this reaction, so I would tread lightly.
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