3 Worst Weekly Performers: Southwestern Energy Company (SWN), Emerge Energy Services LP (EMES), And Lifelock Inc (LOCK)
New York, NY – GDP INSIDER – 01/07/2014.
Southwestern Energy Company (NYSE:SWN) was caught up in the panic over sliding oil prices. However, the management of Southwestern Energy remains upbeat that things will get better. As such, they are not afraid to increase their investment in the acquisition of more natural gas properties. The company intends to sink $9 billion in the next three years in new natural gas wells.
According to Southwestern Energy Company (NYSE:SWN)’s CEO, Steve Mueller, the demand for natural gas will strong in the U.S. to the end of the decade. As such, they look forward to supplying that demand with good returns to the company.
In 2014, Southwestern Energy Company (NYSE:SWN) was in a sort of a spending spree whereby it purchased natural gas properties in the Utica and Marcellus shale plays. The company bets on a rebound of natural gas prices as demand improves.
Southwestern Energy Company (NYSE:SWN) recently moved to a consolidated headquarters location in Springwoods Village. It previously had scattered offices in Houston area where it occupied five different locations.
The escalating drop in oil prices triggered another sell-off in Emerge Energy Services LP (NYSE:EMES) as investors took their worries in the stock too far. One of the greatest concerns among investors in Emerge Energy Services is whether the company can keep its cash distribution during these hard times. While the concern is genuine, it is clear that investors have not realized that the partnership sells its materials under fixed-price contracts, which cushions it from sudden changes in market conditions.
As such, it doesn’t look like Emerge Energy Services LP (NYSE:EMES) is dangerously exposed to the fallout in the oil industry. Analysts at Wunderlich Securities recently restated their “Buy” rating on the stock, but cut the target price to $100 from $130.
Identity theft prevention company, Lifelock Inc (NYSE:LOCK), was hit as it turned out that earnings estimate actions on the stock have not been on an encouraging on trend in the past few weeks. According to Zacks, there have been no revisions on either side to the company’s earnings estimate for the current year in the past weeks. Additionally, the consensus estimate has not changed over the same period. The development does not inspire confidence in the stock, something that worries investors.
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