If You Sell an Energy Company, Sell for the Right Reasons

By Tyler Crowe – Nov 6, 2013 at 8:28PM

NYSE: HK

Halcon Resources

Both Halcon Resources and Kodiak Oil & Gas saw big drops in share price after they missed earnings, but that isn't a reason to sell these companies.

An earnings miss can cause a company to drop a few points, but both Halcon Resources (HK) and Kodiak Oil & Gas (NYSE: KOG) saw a good chunk of investors sell after missing Wall Street earnings expectations. For these two young companies, it's very hard to justify a mass exodus based on an EPS miss of a few cents when so many things are going right on the production side of the business.

If you are going to sell shares in a company like Halcon Resources or Kodiak Oil & Gas, then you should do it for the right reasons. Tune into the video below to find out a good reason to sell a company and whether Halcon and Kodiak are sell candidates right now.

Fool contributors Aimee Duffy and Tyler Crowe have no position in any stocks mentioned. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively.

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