Investors Hate These 3 Stocks

Photo credit: Flickr/Janice Waltzer

The Eagle Ford Shale has fueled a remarkable rise in American oil production. It has also fueled gains to investors. That being said, there are three Eagle Ford Shale-focused stocks that investors really hate. In fact, investors are so worried the stocks of Penn Virginia (NYSE: PVA  ) , Swift Energy (NYSE: SFY  ) , and Sanchez Energy (NYSE: SN  ) will blow up, that these are among the most heavily shorted stocks in the sector.

There's certainly reason for investors to be afraid of going long on these stocks. Penn Virginia, for example, is up more than 200% during the past year. The debt-laden company could easily implode if oil prices go south. Likewise, Swift Energy and Sanchez Energy have used debt to fuel growth during the past few years. Again, this is causing concern among investors, especially as this debt is being used to fuel natural gas-focused growth.

All that being said, this hate might not be justified. Penn Virginia's oil-focused assets could make it a takeout target that would incinerate short-sellers. Meanwhile, increased natural gas exports could fuel gains for both Sanchez Energy and Swift Energy, as both companies own gas assets close to export facilities.

In order to help investors decide if the good might outweigh the bad, I created the following slideshow presentation. It takes a closer look at the reasons why investors are shorting Penn Virginia, Swift Energy, and Sanchez Energy, while pointing out why betting against these companies might not be a good idea. 

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That’s beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3031128, ~/Articles/ArticleHandler.aspx, 9/4/2015 5:08:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Matt DiLallo

Matthew is a Senior Energy and Materials Specialist with The Motley Fool. He graduated from the Liberty University with a degree in Biblical Studies and a Masters of Business Administration. You can follow him on Twitter for the latest news and analysis of the energy and materials industries:

Today's Market

updated Moments ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:05 PM
PVA $1.08 Down -0.04 -3.57%
Penn Virginia Corp CAPS Rating: *
SFY $0.55 Down -0.05 -8.33%
Swift Energy Compa… CAPS Rating: **
SN $5.81 Down -0.20 -3.33%