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 explorer BPZ Resources
So what: The company announced estimates for Block Z-1 in Peru and its intent to identify a partner for the area. A report from the company's independent reserve auditor -- Netherland, Sewell and Associates -- estimates there's 981 million barrels (MMBO) of unrisked prospective oil in Block Z-1, with low and high estimates of 269 MMBO and 2,750 MMBO, respectively.
Now what: A short squeeze is adding fuel to the move today because 17% of the float was short as of the end of May. Today's move is a welcome sight for investors who had recently seen shares hit a new 52-week low and get pounded by short-sellers. I think this move has more legs in the short term considering the short-sellers who have to start getting out now.
Interested in more info on BPZ Resources? 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.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.