why bonanza creek energy, basic energy services, and matrix service company all jumped this week
TRANSCRIPT
Why Bonanza Creek Energy, Basic Energy Services, and Matrix Service Company All
Jumped This Week
Volatility continued to be the main theme of the market this week as it
made several triple-digit moves. Meanwhile, crude oil kept bouncing
around, hitting a high near $50 a barrel on Monday, only to drop to less than $44 a barrel a few days
later.
This led to a lot of volatility among energy stocks, with dozens surging or plunging by double digits by the
end of the week. Photo credit: TaxCredits.net
What:Oil producer Bonanza Creek Energy’s (NYSE: BCEI) stock jumped more than 13%
this week.
So What: Key driver: Wunderlich
reiterated its Buy rating on the company and $29 price target
It pointed out that the company has a negative implied land value vs. its peers
Now What: Wunderlich also said that
the debt fears are overblown as the company has long duration debt that is covenant light
Key takeaway: Investors seem to agree that this stock is oversold
What:Energy engineering company Matrix Service Company (NASDAQ: MTRX) leapt more
than 14% this week.
So What: Key driver: Matrix Service
Company reported its fiscal fourth-quarter results on Monday
EPS of $0.40 per share, which was $0.13 per share higher than estimates
Revenue of $370.5 million, which was up 7.6% over last year
Now What: Company also said it was
confident in its fiscal 2016 guidance and that it has a record backlog, as well as several proposals for additional projects
Key takeaway: Investors were pleased with the results and optimistic outlook
What:Oil-field service company Basic Energy Services (NYSE: BAS) rocketed more than
17% this week.
So What: Key driver: Wunderlich
upgraded the company from a Sell to a Hold with a $4 price target
The upgrade noted that Basic is doing a good job managing through a very tough downturn
Now What: It also noted that Basic has
$200 million of liquidity and recently made a good deal with its banks
Further, despite the downturn, the company should still generate cash flow
Key takeaway: Investors agree that Basic Energy Services looks like it will survive the downturn
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