Expand and Contract
The stock prices of DNR and NE move in shameless proportion to crude. At the moment, Denbury Resources (NYSE:DNR) is hypersensitive to crude due its $1.7 billion capital void after buying competitor Penn Virginia (NASDAQ:PVAC) for cash. AT&T (
T) is suffering the same undervaluation after merging with Time Warner. Noble (
NE) makes less erratic jumps than DNR, but is just as obedient to oil prices.
Comparing the charts of NE and DNR with light sweet crude, their lines expand apart at times to leave space; then they contract together again. Like they are breathing in and out. Inhale/expand, exhale/contract. Rhythmically. The US stock market has one last tailwind: crude. It will blow back up and briefly overvalue symbols like DNR, NE, or NYSE:SWN.
T) is suffering the same undervaluation after merging with Time Warner. Noble (NE) makes less erratic jumps than DNR, but is just as obedient to oil prices. Comparing the charts of NE and DNR with light sweet crude, their lines expand apart at times to leave space; then they contract together again. Like they are breathing in and out. Inhale/expand, exhale/contract. Rhythmically. The US stock market has one last tailwind: crude. It will blow back up and briefly overvalue symbols like DNR, NE, or NYSE:SWN.
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.