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Oil and Gas Operations Stocks, Including CNOOC Limited, Making Big Moves on September 28, 2012
The Nasdaq is trading down 0.6%, the S&P 500 has declined 0.5% and the Dow has slipped 0.5% on a bad morning for the market.
The Oil and Gas Operations sector (DIG) is down 1.3%, underperforming the market overall. The current biggest movers in the sector are:
Broker Summary: Charles Schwab Online Brokerage
Rising 2.2%, SM (NYSE:SM) is currently trading at $53.98 per share. The company's volume is currently 406,304 shares for the day, consistent with its current daily average. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. SM's P/B ratio of 2.3 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
After an increase of 2.1%, TransGlobe Energy Corporation (Nasdaq:TGA) has reached a current price of $10.80. So far today, the company's volume is 35,790 shares. 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. 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. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for TGA is 2.32, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Currently trading at $47.07 per share, Baytex Energy Corp (NYSE:BTE) has fallen 2%. The company's volume for the day so far is 50,797 shares, 0.2 times the current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for BTE is 18.2. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
After a decline of 1.6%, Range (NYSE:RRC) has hit a share price of $68.93. The company is trading at a volume of 471,809 shares. At this rate, trading activity will likely be down from yesterday when 1.6 million shares changed hands. The trading volume for a stock indicates the level of investor interest. A company's investment value can be 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 debt-equity (D/E) ratio is a leverage ratio. RRC has a D/E ratio of 109%, which is relatively high. This shows that the company's assets are financed primarily through debt. 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.
CNOOC Limited (NYSE:CEO) is trading at $202.45 per share, down 1.6%. At 38,218 shares, the company's volume so far today is 0.3 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. CEO has a low capitalization ratio of 9.4%. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
At $44.30, Cabot Oil & Gas (NYSE:COG) has slipped 1.6%. So far today, 563,800 shares have changed hands. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. COG has a debt ratio of 51.7%. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Falling 1.6%, InterOil Corporation (NYSE:IOC) is currently at a share price of $76.74. The company's volume is currently 281,972 shares for the day, 0.3 times its current three-month average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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/book value ratio is calculated by dividing the current stock price by the company's book value per share. IOC has a P/B ratio of 10.47 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
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 down 1.3%, underperforming the market overall. The current biggest movers in the sector are:
| Company | Market Cap | Percentage Change |
| SM (NYSE:SM) | $3.44 billion | +2.2% |
| TransGlobe Energy Corporation (Nasdaq:TGA) | $777 million | +2.1% |
| Baytex Energy Corp (NYSE:BTE) | $5.8 billion | -2% |
| Range (NYSE:RRC) | $11.39 billion | -1.6% |
| CNOOC Limited (NYSE:CEO) | $91.86 billion | -1.6% |
| Cabot Oil & Gas (NYSE:COG) | $9.45 billion | -1.6% |
| InterOil Corporation (NYSE:IOC) | $3.77 billion | -1.6% |
Rising 2.2%, SM (NYSE:SM) is currently trading at $53.98 per share. The company's volume is currently 406,304 shares for the day, consistent with its current daily average. If a stock price moves on high volume, this means that the change is a significant one. It is important for an investor to estimate the value of any potential or existing investment; valuation ratios make this easier. 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. SM's P/B ratio of 2.3 shows that its share price is higher than its book value. This may be a sign that the company is overvalued. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: Using The Price-To-Book Ratio To Evaluate Companies
After an increase of 2.1%, TransGlobe Energy Corporation (Nasdaq:TGA) has reached a current price of $10.80. So far today, the company's volume is 35,790 shares. 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. 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. The price/sales ratio measures a company's stock market price by its revenues. The P/S ratio for TGA is 2.32, which is relatively high. This could be a good sign if the share price increases. It is important to keep in mind when looking at the P/S ratio that just because a company is generating revenues, this does not mean that the company is profitable, and in the long run, profits drive stock prices.
Currently trading at $47.07 per share, Baytex Energy Corp (NYSE:BTE) has fallen 2%. The company's volume for the day so far is 50,797 shares, 0.2 times the current three-month average. Volume is used to evaluate how meaningful the price movement of a stock is. 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 price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). P/E ratio for BTE is 18.2. To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: How To Find P/E And PEG Ratios
CNOOC Limited (NYSE:CEO) is trading at $202.45 per share, down 1.6%. At 38,218 shares, the company's volume so far today is 0.3 times the average daily volume. Volume is an important indicator because it indicates how significant a price shift is. Investment valuation ratios can be very useful in estimating whether a stock price is too high, reasonable or a bargain investment opportunity. 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. CEO has a low capitalization ratio of 9.4%. A low capitalization ratio can signify a failure to leverage equity into investment, missing valuable opportunities for growth and expansion. Prudent use of leverage (debt) increases the financial resources available to a company for growth and expansion.
At $44.30, Cabot Oil & Gas (NYSE:COG) has slipped 1.6%. So far today, 563,800 shares have changed hands. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt ratio gives users a quick measure of the amount of debt that the company has on its balance sheets compared to its assets. COG has a debt ratio of 51.7%. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
Falling 1.6%, InterOil Corporation (NYSE:IOC) is currently at a share price of $76.74. The company's volume is currently 281,972 shares for the day, 0.3 times its current three-month average. In technical analysis, trading volume is used to determine the strength of a market indicator. 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/book value ratio is calculated by dividing the current stock price by the company's book value per share. IOC has a P/B ratio of 10.47 which shows that its share price is higher than its book value. This high share price relative to asset value is likely to indicate that the company has been earning a very high return on its assets. Users need to be careful when applying this ratio though, as it is more useful for industrial companies that have a lot of tangible assets than it is for technology or consumer product companies that may not have much in the way of hard assets. SEE: How Buybacks Warps The Price-To-Book Ratio
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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