Eagle & Beagle
This week's eagle was flying pretty close to the ground before it discovered an updraft.
Shares of GMX Resources vaulted 65 percent last week after the Oklahoma City energy company disclosed an infusion of much-needed capital by an arm of the Blackstone Group.
The firm lost $60 million last quarter, but last week said it expects that could be the low point as the company moves its production focus to oil from natural gas. CEO Michael J. Rohleder last week told analysts oil production “will grow significantly” as the company continues that move.
The stock, which last month set a 52-week low of 45 cents, closed Friday at 79 cents.
While the shares remain in penny stock territory, investors should take note that the stock has sold at levels of less than $1 in 2003 — about five years before the stock peaked at more than $80 a share.
Many an investor who might shrug off an analyst's downgrade or a rocky earnings report will run away from geopolitical uncertainty.
Such is the case for this week's beagle, Apco Oil & Gas International. Apco stock slid 13 percent last week, and has tumbled more than 80 percent since Argentina, where the Tulsa company has much of its operations, seized assets of a Spanish energy company early this year.
Despite last week's announcement that Apco had generated higher profits on higher prices and higher production, the stock fell.
Thomas Bueno, Apco's chief operating officer, conceded “while the political and business environment in Argentina remains challenging, we are hopeful the situation will stabilize and the government will allow companies to focus on investing and finding hydrocarbons.”
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Writer Don Mecoy.