Eagle & Beagle
This week's eagle wrapped up a wild week with a phenomenal Friday.
SandRidge Energy has been in the news lately as some disgruntled shareholders have challenged the Oklahoma City firm's management. But traders appeared to shrug off the complaints, pushing SD shares up 24.6 percent last week.
The stock closed Friday at $7.29, precisely where it was on Oct. 18. The chart between then and now forms a sharp “V.” Trading has been heavy during that period, including on Nov. 9 when 76 million shares of SD changed hands.
Shorts sellers may be getting out, which would boost volume and prices. It may be that the activist shareholders have persuaded traders that change is coming that might goose prices. It could be that some big spenders believe the company's share price simply doesn't reflect the value of SandRidge's assets.
Whatever the cause, it's good news for long-term shareholders.
Our beagle stock seems to be stuck in a tight trading range. Unfortunately, that range is firmly in sub-$1 territory.
Shares of GMX Resources, an Oklahoma City energy company, dipped 13.6 percent last week to land at 55 cents. While the percentage point decline looks big, the shares fell just 9 cents.
That low price prompted shareholders to recently approve a reverse stock split that could range from 1-for-5 to 1-for-13. Such a split would boost the price of each share, although the value apportioned to each shareholder would remain essentially stable.
Directors are expected to determine the details of the reverse split by the end of January.
Shareholders likely will be gratified just to see the price rise — even artificially — out of the realm of penny stocks.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) stocks by Business Writer Don Mecoy.