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 production services specialist Complete Production Services
So what: It appears that with oil up more than $4 per barrel, investors are once again excited about the prospects for drillers. The last two weeks have been particularly rough on Complete Production shareholders, who witnessed their stock tumble briefly from $27 to below $20 in just seven trading sessions. Also, late last week, Global Hunter Securities downgraded the company from buy to accumulate.
Now what: If anything, today’s move higher just goes to show how short-term of an effect analyst upgrades and downgrades can have on a stock. Last week’s downgrade was nothing more than another potential buying opportunity in a company valued at less than six times forward earnings. Unless production was to drop off seriously for Complete Production’s customers, this has all the potential to drill through a turbulent market and roar higher. Complete Production’s sector peers, including giants Baker Hughes
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong. The Motley Fool owns shares of Schlumberger. 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.