Dallas, Texas 10/23/2013 (Financialstrend) – SandRidge Energy Inc. (NYSE:SD) is a $3.18 billion market capitalized oil producing and gas drilling company. At close of business on October 22, the stock was trading at $6.63 per share down 0.6% from its previous day close. At current valuations this oil production company is trading 46% above its 52 week low pricing.
The stock vaulted close to 4.08% during trading last week when market guru Leon Cooperman let slip in an CNBC interview that he considers this small capped oil firm as one of his favourite come back acts. He chose to slot the company under the “”phoenix from the ashes” headline alongside Qualicorp. He went on to name a price target of $10 for the share. This translates to a 33% premium on yesterday’s trading price. He remains gung-ho about the prospects for this firm since he sees the new management team settling down after the uncertain period during which proxy fights among key investors led to change in management. He has been quoted as saying that, “their acreage position in their production would justify a price probably 50% higher than it is presently.”
The interview was telecast on October 15 and the market reacted instantaneously. On the same day it gained 3.5% to which it added gains through the weak. Even before Mr Cooperman’s vote of confidence, the stock had started to break out from the mass of other small cap oil producers. It has appreciated by 16% in the last month and by close to 37% in the past 6 months.
Over the past 12 months the oil manufacturer had managed sales of $2.9 billion and with accumulated net loss of $1 billion in the same period. Its sales during 2Q operations had seen a increase of 7.2% and investors would be hoping that the production numbers would have gone up by the time its 3Q results would get announced in next couple of weeks.