Are These Stocks Becoming Undervalued? BreitBurn Energy Partners L.P. (BBEP) and Career Education Corp (CECO)
New York, NY – GDP INSIDER – 04/01/2015.
This article discusses two companies: BreitBurn Energy Partners L.P. (NASDAQ:BBEP) and Career Education Corp (NASDAQ:CECO)
BreitBurn Energy Partners L.P. (NASDAQ:BBEP) continued to fall yesterday with the stock declining 1.26$ or $0.07 to close at $5.48 on fairly light trading of 2.256 million shares, when compared to its three month average trading volume of 3.636 million. The exploration and developer of oil, natural gas liquids and gas properties started to fall on Monday, after it decided to cut its distribution by fifty percent. While not well received by the market, this move by BreitBurn Energy Partners L.P. is consistent with many of its competitors, who have taken similar drastic moves to cut their cash outflow and improve liquidity, while oil prices are still severely depressed. The distribution reduction was announced in conjunction with a private offering of $350 million in perpetual convertible preferred units and $650 million in senior secured notes, to ensure that the company is well equipped financially in the case that oil does not recover in the near term, making the stock a hold.
Career Education Corp (NASDAQ:CECO) fell back again yesterday with the stock declining 4.19% or $0.22 to close at $5.03 with more than 2.147 million shares changing hands, compared to its three month average trading volume of 0.595 million. The educational services provider has been on a bumpy ride of late, with the stock fluctuating between $4.99 and $6.23 for the last month. Overall, Career Education Corp has been underperforming the S&P 500 index so far this year, with the stock down 27.73% YTD compared to the S&P 500 which has gained 0.44% over the same period. With the stocks MACD still in a bearish diversion and RSI of 37.09, it still looks like there is more downward pressure on the share price, implying that it has not yet bottomed out. However, it is still worth keeping a close eye on, as it may reverse its current trend in the near to medium term.
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