ATP Oil & Gas Shares Popped: What You Need to Know

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 ATP Oil & Gas (Nasdaq: ATPG  ) jumped 18% today on positive analyst comments.

So what: Shares of ATP have been all over the place recently, but today they're jumping because Rodman & Renshaw LLC analyst Jeffrey P. Hayden thinks there's too much fear in the market about the company. Hayden said concerns that the company could file for bankruptcy are "overblown."

Now what: Hayden does have an outperform rating on the stock, so the positive comments shouldn't be surprising. However, ATP has been racking up big losses and burning through cash, and has a ton of debt on its balance sheet, so the concern is at least somewhat justified. The volatility alone is enough to keep me away from shares today.

Interested in more info on ATP Oil & Gas? Add it to your watchlist.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.

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Read/Post Comments (3) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 11, 2011, at 3:04 PM, bmswbc wrote:

    ATPG growth phase; 2 news Telemark well comming on line. Increased production increases SALES and REVENUE GROWTH.

    $A $20.00+ IN 12 MONTHS OR SOONER.

  • Report this Comment On August 11, 2011, at 3:28 PM, zorro6204 wrote:

    What's overblown is Rodman & Renshaw's (whoever that is) use of the BK word in the first place. They refied their debt before the BP spill, they don't owe anything until 2015.

    That's not why the stock went down, it's a high beta, oil price sensitive stock that got hammered on a panic day for both oil and the markets. It wasn't the only one.

    And it didn't go up today because of those goofballs, it went up because oil recovered, the market took off and principally because ATPG was hugely oversold. Duh.

  • Report this Comment On August 11, 2011, at 11:32 PM, lovesstocks2 wrote:

    Plus the market seems to have completely undervalued the well at Clipper which came in with so much more than was expected.

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