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 natural gas service provider Basic Energy Services (NYSE: BAS) rose 12% today on the back of higher oil prices.
So what: The company did announce an earnings release date of Oct. 20 this morning, but I doubt that had much to do with the move. Instead, Basic Energy Services and other oil-related stocks have piggy-backed on the incredible 4.4% jump in the price of oil.
Now what: As the price of oil and natural gas fall, as they have recently, the cost of drilling in the U.S. and other locations becomes less economical, affecting service providers. So it shouldn’t be a surprise that Basic Energy's shares have almost directly followed the price of oil down in recent months. Today's rally is just part riding that wave, and if oil continues to rise, then I would expect shares to continue to move upward as well.
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