|Forbes.com, Spring, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.|
Following Q1/12 Canaccord Genuity oil and gas analyst John Gerdes released his favorite BUY rated companies, his HOLD rated companies, and his SELL rated companies:
E&P top long/short picks
Our favorite BUY-rated names include Anadarko [APC] (Eagle Ford, Wattenberg field), Bill Barrett [BBG] (Unita Basin), Cabot [COG] (Marcellus) and Carrizo [CRZO] /Comstock [CRK] /EOG/Goodrich [GDP] /SM (Eagle Ford), which offer differential equity value upside in our opinion.
HOLD-rated names include EQT/Range [RRC] /Southwestern [SWN] (market gas macro valuation), Forest [FST] (asset productivity fully appreciated) and Continental [CLR] (valuation).
SELL-rated SandRidge [SD] is overvalued on over-enthusiasm as to the Mississippian play productivity and under-appreciation of longterm capitalization challenges in our view.