Tag Archives: Comstock Resources

Business, Finance, Occupation & Industry

These Winners Couldn't Save the Dow's Record Streak

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By Dan Caplinger, The Motley Fool

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No market can go up forever, and the Dow Jones Industrials finally gave in to the inevitable, failing to set its ninth straight record and instead closing down 25 points. All in all, though, the stock market was still pretty optimistic, allowing neither inflationary pressure on consumer prices nor weaker consumer confidence cause a major reversal. Broader market measures also finished modestly lower, with the S&P 500 finishing less than five points below its own all-time record high.

But some stocks in the Dow certainly tried their best to extend the average’s winning streak. Bank of America soared almost 4% on news that it would buy back more than $10 billion in common and preferred shares, finally delivering on the much-anticipated hope that the company would return capital to shareholders. Yet those wanting higher dividends than the token $0.01 quarterly payout per share have to be disappointed by the emphasis on buybacks, especially with the shares trading almost 150% above where the company could have repurchased them in late 2011.

Boeing also finished higher, rising more than 2% as the company said it believes that its grounded 787 Dreamliner could be back in the air within weeks after it implements a fix for its lithium-ion battery problems. Once that problem is finally in the past, investors should be able to refocus on the trillion-dollar potential that the aerospace industry has for Boeing in the coming decades.

Outside the Dow, Comstock Resources vaulted higher by 13% after fellow independent oil and gas producer Rosetta Resources agreed to buy Comstock assets in West Texas in the Permian Basin area. The move will help diversify Rosetta’s heavy concentration in the Eagle Ford area, but it will give Comstock more cash to spend on capital expenditures to build up its Eagle Ford presence.

More records in store?
Even though the Dow’s record streak may be over for now, the stock market isn’t doomed to fall further. The strength of these winning stocks is just one example of how, even in a down market, you can find winners that will serve you well both now and for the long run.

The big question that Bank of America shareholders are trying to figure out is whether the stock can keep winning after having doubled in 2012. In The Motley Fool’s premium research report on B of A, analysts Anand Chokkavelu and Matt Koppenheffer lift the veil on the bank’s operations, giving the pros and cons of investing in Bank of America right now. Don’t wait another minute — click here now to claim your copy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Comstock Resources' Shares Popped

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By Travis Hoium, The Motley Fool

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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 Comstock Resources jumped as much as 18% today after announcing an asset sale.

So what: Comstock is selling 53,306 net acres in the West Texas Permian Basin to Rosetta Resources for $768 million. The money will be used to pay off debt and increase its drilling program in the Eagle Ford shale.

Now what: Capital expenditures are now expected to be $410 million for drilling activities, of which $312 million will be spent in Eagle Ford. I think the move to reduce debt and improve liquidity will be a positive for shareholders going forward. Still, I’d like to see consistent profits before jumping in, especially at this elevated price.

Interested in more info on Comstock Resources? Add it to your watchlist by clicking here.

The article Why Comstock Resources’ Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Why Clayton Williams Energy's Shares Popped

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By Travis Hoium, The Motley Fool

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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 Clayton Williams Energy were up 10% today after an asset sale took place near its properties.

So what: Rosetta Resources bought 53,306 acres in the West Texas Permian Basin from Comstock Resources today, and with Clayton’s big exposure to the area, shares have shot higher. This could at least give Clayton flexibility to sell assets if it feels it can get a good price to pay down debt.  

Now what: Since the news today wasn’t specifically about Clayton Williams, I wouldn’t change my investment thesis, but it could be a good sign for the company’s assets. I’d be more concerned about continued growth and exploiting the existing acreage before speculating on asset sales. I also don’t think this suddenly makes the stock a buy, and shares will likely settle down after the euphoria of today’s sale wears off.

Interested in more info on Clayton Williams Energy? Add it to your watchlist by clicking here. 

The article Why Clayton Williams Energy’s Shares Popped originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Rosetta Resources Buying Permian Basin Assets From Comstock Resources

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By Aimee Duffy, The Motley Fool

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Houston-based Rosetta Resources plans to acquire 53,306 net acres in the Permian Basin from Comstock Resources for $768 million, the company announced today.

Approximately 40,000 acres are located in the Wolfbone area of the Permian, and current production there is about 3,300 barrels of oil equivalent per day.  Rosetta is anticipating a serious upside to this acreage, identifying close to 800 net well locations for vertical drilling.  The company also said there may be further upside if horizontal drilling is possible.

The remaining 13,000 acres are undelineated and are considered more of an exploration opportunity.

CEO Jim Craddock is enthused about Rosetta’s buy: “This transaction provides entry into the prolific Permian Basin with both existing production and strong growth potential in proven delineated areas as well as prospective exploration targets on undeveloped acreage,” he is quoted as saying in the company press release.  The Permian Basin is indeed a prolific play, accounting for 20% of U.S. production outside of Alaska.

The deal is subject to standard regulatory approvals, and is expected to close by May 15.

Comstock said it intends to use the proceeds from the sale to reduce debt and fund an increase to its 2013 drilling program in the Eagle Ford shale. The company plans to spend $410 million in 2013 on drilling activities and $12 million on exploratory leasehold.

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The article Rosetta Resources Buying Permian Basin Assets From Comstock Resources originally appeared on Fool.com.

Fool contributor Aimee Duffy has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Shares of CRK Now Oversold

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By ETFChannel.com

In trading on Tuesday, shares of Comstock Resources, Inc. (NYSE: CRK) entered into oversold territory, changing hands as low as $13.02 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. …read more
Source: FULL ARTICLE at Forbes Markets