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 Kodiak Oil & Gas
So what: Adjusted earnings per shares were breakeven, lower than the $0.02 per share analysts had expected. The move hit bottom today when nearly 200,000 shares traded hands ten minutes after the market opened, crashing through the bids. Shares have settled down since then and are down about 5% as I am writing.
Now what: As the company ramps up pipeline access and trucking and other costs are eliminated, profit should improve going forward. Before today's earnings, analysts were expecting $0.41 in earnings per share next year so the ramp up should be quick. I see this as a great buying opportunity, especially with high oil prices and unrest throughout major oil producing countries around the world.
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