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 oil and gas explorer QEP Resources (NYSE: QEP ) jumped as much as 10% today after a new investor was disclosed.
So what: Activist investor Jana Partners disclosed a 7.5% stake in the company and has plans to unlock shareholder value. Jana has held talks with QEP management, and is reported to be calling for moves including breaking out one segment of the company.
Now what: When activist investors get involved it's tough to know where the company will head. Jana Partners is arguing that management hasn't done enough to unlock the company's value, although QEP did create a master limited partnership to sell some assets earlier this year. I don't think an activist move like this is a reason to buy the stock or a reason to change your investing thesis. However, it might force management to make some changes, although these deals have resulted in both success and failure for activist investors.
Oil stocks that are a buy today
The energy market can be volatile, especially when you're investing in oil explorers. To help investors get rich off of rising oil prices without betting on specific oil fields, our top analysts prepared a free report that reveals three stocks that are bound to soar as explorers look for new ways to extract oil. To discover the identities of these stocks instantly, access your free report by clicking here now.