Domino #3 – B of A Runs Away
Posted by zmann on October 4, 2006
Ok, I’ll probably drop the domino titles soon (except for the announcements by the bulge bracket firms) but it’s fun to be right about these guys! Let’s see oil hitting record territory – reiterate BUY, pound table about how undervalued stocks are. Natural gas falls 60% from beginning of year, reiterate BUY, pound table harder. Oil falls 20%, downgrade group, feign ignorance of the concept of Buying LOW and Selling HiGH. Nice job guys. One word of caution is that there are probably one or two analysts out there who have seen themselve as bears and now see an opportunity to upgrade. If oil stabilized above $57.50, I’d look for a Group upgrade or two, probably close to October 20 (op-ex) so I plan to be out of all October contracts prior to that week.
This morning Banc of America cutting estimates, price targets, and ratings on numerous E&P stocks. So far I’ve seen CRK, THX, WLL, COG, TLM, APC, NBL which is only a fraction of their coverage list and all went from BUY to Neutral and suffered 10 to 20% price target reductions. Once again, this party’s just getting started.