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Why SandRidge Energy Inc. Stock Popped 30% and Then Dropped

By Matthew DiLallo - Oct 16, 2014 at 11:48AM

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SandRidge Energy Inc. Stock popped nearly 30% yesterday only to drop as much as 6% today. What’s going on?

It's been a crazy week for investors in SandRidge Energy's (NYSE: SD) stock. Yesterday the stock surged nearly 30% on absolutely no news. Today, the stock is falling and earlier was down as much as 6%, again on no news. In the chart below we can see yesterday's brief pop and then today's subsequent fall.

SD Price Chart

SD Price data by YCharts

SandRidge Energy wasn't alone in popping yesterday. Several energy stocks jumped more than 7% with Swift Energy Co. (SBOW -13.23%) up 21% and Northern Oil & Gas (NOG -9.58%) up 10% in what appears to be some bottom-feeding by investors, who are buying up oil stocks that have been severely beaten down this year. These three stocks in particular have been absolutely crushed this year, as we see in the next chart.

SD Chart

SD data by YCharts

Today's sell-off in SandRidge Energy could be some quick profit taking or just over leveraged investors running for the exits.

While shares will likely be very volatile as oil prices keep falling, the real news to keep an eye on are SandRidge Energy's third-quarter earnings. The company expects to release those results Nov. 5 after markets close. That report should give investors a better idea of how SandRidge Energy is managing the plunge in oil prices and what to expect form the company going forward. 

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