Hess Corp.'s Wild Ride Raises Questions, Says Dr. Joe Duarte
Duarte added: Aside from being a statistical oddity, the fact that the usually quiet stock is starting to move in nearly 5% increments on any given day, much less being that active in after hours trading, without any specific news, is a sign that something's up. Making the shares more interesting is that fact that the stock rose some 7% on Thursday, delivering a nice looking chart breakout.
To be sure, the oil sector is back in play, given the fact that crude prices are back above $50 and OPEC seems to have taken some supply out of the market. Other long term fundamentals are also pointing toward higher prices, such as decreasing production from non-OPEC sources such as Russia and Mexico.
But that doesn't really address the fact that Hess is a very hot and volatile stock right now. There are no news that is specific to Hess at this point, which usually means that somebody with big money is buying shares. Warren Buffet comes to mind, given the fact that he likes Conoco Phillips, and he's a value player.
Still, we don't really know what's happening, other than the stock is acting well, and that it is one of our energy portfolio holdings at this point, which puts us in a good position. At some point the news will come out, and the stock will react. We would not be surprised to start hearing takeover or other deal rumors start here. But right now, all is quiet, execpt of course, the stock is on the move.
Duarte's conclusion: Something's up with Hess.
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Duarte's IntelligentForecasts.com (http://www.intelligentforecasts.com) provides free news coverage and analysis, and his daily articles and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Duarte has combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.
He is the author of: Futures And Options For Dummies, Successful Energy Sector Investing, Successful Biotech Investing and co-author of After-Hours Trading Made Easy. In early 2001, in Successful Energy Sector Investing, he correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States. He has also appeared as a weekly guest on Market Mavens Radio and has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.
One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990. His articles and commentary have been featured on CBS Marketwatch, Barron's, Smart Money, Medical Economics, and in Technical Analysis of Stocks and Commodities magazines. In 2003, Doctor Duarte received second place, in the professional section, of the Medical Economics Investment Challenge with a 12-month return of 42%.
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