Eagle & Beagle
Traders want to know why a stock jumps 22.6 percent in a week. But they might dismiss a lowly 45-cent gain.
Last week, Oklahoma City-based PostRock Energy Corp. did both.
Because PSTR shares are low-priced and thinly traded, the stock soared to the top of our list of state-based publicly traded companies by moving to $1.90 a share, up from $1.55 a week earlier.
The jump was accompanied by relatively modest volume, with less than 100,000 shares changing hands for the week.
PSTR, which is juggling liquidity and commodity pricing issues, is involved in exploration, production and transportation of oil and natural gas, mainly in the Cherokee Basin of Oklahoma and Kansas.
We'll keep watching while we wait to hear from management early next month in a quarterly conference call.
Talked to a guy this week who nearly persuaded himself to buy a truckload of short-term options based on what he thought might be really good information.
Ultimately, he decided not to do it, and thereby saved himself a lot of money and heartache.
Short-term plays are risky and often stupid. Our beagle this week offers a bit more evidence of that.
Continental Resources shares fell nearly 12 percent last week. Regular readers will recall that CLR was our reigning eagle, gaining nearly 13 percent the previous week.
The decline came after Continental CEO Harold Hamm reported huge growth and big expectations for the company's activity in the oil-rich Bakken Shale.
I bet long-term investors, who shrug at the one-week swings, sleep a lot better than the frenetic, active traders.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Writer Don Mecoy.