In this video, energy analyst Joel South discusses SandRidge Energy (NYSE: SD) and explains why the company is still worth purchasing after its 20% run up this past week. Besides two of the company's largest shareholders actively lobbying for an outright sale, shareholders could also realize solid capital gains if SandRidge strategically deployed its capital. With a net asset value of $16 billion and currently trading at 1.3 times book value, SandRidge still offers shareholders an incredible value. If you have the stomach to brave the inherent volatility in this small-cap E&P, don't be afraid to pull the trigger after this week's gains.
Shares of Sandridge are up over 20% in the past five days, but the stock is still significantly undervalued. Here's why.
About the Author
Joel is a University of Washington graduate and covers energy and materials for The Motley Fool. Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.
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