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Denbury and More Big Movers in Oil and Gas Operations on September 20, 2012
The morning has been bad for the market. The Nasdaq is down 0.3%; the S&P 500 has decreased 0.3%; and the Dow has declined 0.1%.
The Oil and Gas Operations sector (DIG) is currently ahead of the overall market, down only 0.2%, and its biggest movers are currently:
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Bonanza Creek Energy (NYSE:BCEI) is down 4.3% to reach $23.09 per share. So far today, the company's volume is 202,074 shares. At this rate, trading activity will likely be down from yesterday when 730,484 shares changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 10.1% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Carrizo Oil & Gas (Nasdaq:CRZO) is down 3.8% to reach $25.84 per share. The company's volume is currently 494,048 shares for the day, 0.7 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. The D/E ratio for CRZO is 147%. Generally, a high D/E ratio means that the company may have difficulty generating enough cash to pay off its debts. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
InterOil Corporation (NYSE:IOC) is down 3.6% to reach $83.64 per share. This morning, the company is trading a volume of 353,932 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. IOC's P/B ratio of 11.41 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
Approach Resources (Nasdaq:AREX) has decreased to $29.84 per share, a 3% fall. With 2.3 million shares changing hands so far today, the company's volume is five times its current three-month average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. AREX's P/E ratio of 153.9 is above the industry average of 16.77. Usually, if a stock has a high P/E ratio, it indicates that the market expects the company to grow earnings quickly in the future. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Investment Valuation Ratios: Price/Earnings Ratio
After rising 3%, Denbury (NYSE:DNR) is currently trading at a share price of $17.22. The company's volume for the day so far is 6.9 million shares. This is greater than yesterday's volume of 6.5 million shares. Volume is an important indicator because it indicates how significant a price shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. DNR has a high P/S ratio of 2.44. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Rising 2%, NGL Energy (NYSE:NGL) is currently trading at $25 per share. At 3,925 shares, the company's volume so far today is 0.3 times its current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for NGL is 38.9%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Delek US Holdings (NYSE:DK) has moved up 1.9% and is currently trading at $25.88 per share. The company is currently trading a volume of 155,852 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. DK has a low debt-equity ratio of 19%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
The Oil and Gas Operations sector (DIG) is currently ahead of the overall market, down only 0.2%, and its biggest movers are currently:
| Company | Market Cap | Percentage Change |
| Bonanza Creek Energy (NYSE:BCEI) | $909.1 million | -4.3% |
| Carrizo Oil & Gas (Nasdaq:CRZO) | $1.11 billion | -3.8% |
| InterOil Corporation (NYSE:IOC) | $4.12 billion | -3.6% |
| Approach Resources (Nasdaq:AREX) | $1.09 billion | -3% |
| Denbury (NYSE:DNR) | $6.59 billion | +3% |
| NGL Energy (NYSE:NGL) | $1.27 billion | +2% |
| Delek US Holdings (NYSE:DK) | $1.44 billion | +1.9% |
Bonanza Creek Energy (NYSE:BCEI) is down 4.3% to reach $23.09 per share. So far today, the company's volume is 202,074 shares. At this rate, trading activity will likely be down from yesterday when 730,484 shares changed hands. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. A company's capitalization (not to be confused with its market capitalization) is the term used to describe the makeup of a company's permanent or long-term capital, which consists of both long-term debt and shareholders' equity. The capitalizion ratio of 10.1% is on the low end. Investors generally consider a company with low debt and high equity levels is a good quality investment. This ratio is considered to be one of the more meaningful of the "debt" ratios - it delivers the key insight into the use of leverage by a company.
Carrizo Oil & Gas (Nasdaq:CRZO) is down 3.8% to reach $25.84 per share. The company's volume is currently 494,048 shares for the day, 0.7 times the current daily average. In technical analysis, trading volume is used to determine the strength of a market indicator. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. To a large degree, the debt-equity (D/E) ratio provides another vantage point on a company's leverage position, in this case, comparing total liabilities to shareholders' equity, as opposed to total assets in the debt ratio. The D/E ratio for CRZO is 147%. Generally, a high D/E ratio means that the company may have difficulty generating enough cash to pay off its debts. This easy-to-calculate ratio provides a general indication of a company's equity-liability relationship and is helpful to investors looking for a quick take on a company's leverage.
InterOil Corporation (NYSE:IOC) is down 3.6% to reach $83.64 per share. This morning, the company is trading a volume of 353,932 shares. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. Investors can make use of valuation ratios to estimate whether a stock is fairly valued. If the price/book value ratio of a stock is high, it may indicate that the stock is expensive, while a lower ratio may indicate that the stock is a bargain. IOC's P/B ratio of 11.41 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. A weakness of the P/B value ratio is that while the price component is easily determined by looking at the stock quote, the book value component is more difficult to estimate and more open to individual interpretation and analysis. SEE: How Buybacks Warps The Price-To-Book Ratio
After rising 3%, Denbury (NYSE:DNR) is currently trading at a share price of $17.22. The company's volume for the day so far is 6.9 million shares. This is greater than yesterday's volume of 6.5 million shares. Volume is an important indicator because it indicates how significant a price shift is. Looking at a company's valuation ratios is a good way of getting a basic idea as to its value as an investment. The price/sales ratio measures a company's stock market value by its total revenues or alternatively, a company's price per share by its revenue per share. DNR has a high P/S ratio of 2.44. In young companies, a high P/S ratio is a sign of sales growth that is expected to turn into earnings and cash flow. A limitation of the P/S ratio is that the price component measures only stock market captialization, while sales are a function of the entire capital structure, potentially leading to wide differences between levered and unlevered companies.
Rising 2%, NGL Energy (NYSE:NGL) is currently trading at $25 per share. At 3,925 shares, the company's volume so far today is 0.3 times its current daily average. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. A company's value as an investment is more easily estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The capitalization ratio is calculated by dividing long-term debt by the sum of long-term debt and shareholders' equity. The capitalization ratio for NGL is 38.9%. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
Delek US Holdings (NYSE:DK) has moved up 1.9% and is currently trading at $25.88 per share. The company is currently trading a volume of 155,852 shares. When a stock price moves up or down, watching the volume is a good way of identifying how significant that shift is. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt-equity (D/E) ratio compares the total liabilities for a company to its total shareholder equity. DK has a low debt-equity ratio of 19%. A low D/E ratio may be a sign that the company is not taking advantage of leverage to increase its profits. The D/E ratio percentage provides a much more dramatic perspective on a company's leverage position than the debt ratio percentage.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. Daily stock performance should be weighed against historical performance and put in context of the market overall. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
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