Kodiak Oil & Gas (KOG) is one oil and gas stock that has been on the rise ever since the huge drop in crude oil prices in October 2011 that so negatively affected the business as a whole. With many great things going for Kodiak, it is no wonder the company has been doing comparatively well when placed next to other companies for analysis. Kodiak increased both profit and production exponentially over the course of two years. Yet, I believe Kodiak has seen its rise and will begin to slow down. The opportunities it offers investors going forward will fall short of its peers.
With Kodiak’s recent growth and profits, I think we will possibly see some incremental short-term gains as long as the bottom does not fall out. Overall, the stock has begun to settle. In the case of these smaller oil companies, bad times can be totally detrimental. So keep that in mind that if you are considering a new position in the stock, as it can backfire greatly. Competition is fierce in the markets in which Kodiak completes, but the company has a stellar management team led by Lynn Peterson, who has successfully helped lead other entities through oil and gas booms and busts in the 1980s and 1990s. The company has been developing its reserves at this point, but I believe Kodiak has already run its course and will flatten out.
SandRidge Energy (SD) has had quite a different past two years, as it took a major dip in August 2011 and just cannot see light at the end of the low stock price tunnel. One of the problems associated with SandRidge is that it is widely ignored among many investors, but others find it a quality investment. To continue reading, click here.