RoyPope
12 posts
msg #122701
- Ignore RoyPope
modified |
1/30/2015 11:18:11 PM
I recently took a long position in NOG for both fundamental and technical reasons.
NOG appears to meet a lot of the fundamental requirements for a sound company to invest in.
Fundamentally speaking, a good investment has a P/B of less than 1, a P/E of less than 15 when compared ot the market as a whole, a PEG of less than 1, and low Debt to Equity. Here's how NOG looks...
With PPS at 6.28 and Book Price per Share at 11.04, the P/B = 0.57.
P/E = 4.94
PEG = 0.33
Debt/Eq = 1.10
All-in-all, this makes NOG look to be a pretty sound company fundamentally. The only thing holding it down right now are the problems we're experiencing from OPEC in regards to increased oil supply and reduced price per barrel. Once OPEC turns down the supply of oil they are producing (which I believe will happen sooner than later) I expect NOG will experience sudden sharp price increases.
As for the Technical reasons... well, the PPS has been able to find a solid line of ascending support (minimal, but still ascending) even in light of the declining oil prices. Additionally, volume has pretty much doubled since their prices were driven down, but the increased volume is not enough to drive this stock any lower than it already is. That's a good thing, in my honest opinion.
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