While the oil and gas industry has remained volatile, for investors seeking profit through share growth, there are still some values to be found, while being mindful of both good and not-so-good news for some companies of late. In this article, I will discuss why I feel that Kodiak Oil & Gas Corp (KOG) could be a fantastic opportunity for investors who seek growth in both the short and the long term.
Analyzing Kodiak’s Fundamentals
Kodiak has a market cap of just under $2.5 billion. Although its P/E ratio stands a bit high at 24.83, the shares show a modest EPS of $0.36. Although the company does not currently pay a dividend, investors may very well profit from share growth on this potential up-and-comer.
In fact, this one could be rated as a great value play. The company’s share value more than doubled between October 2011 and late February 2012, before pulling back again in the spring. And, with a potential bottoming-out in the summer of 2012, the shares have been pushing higher ever since.
With Kodiak’s second quarter 2012 net income of over $93 billion, or $0.35 per share, its numbers have surged in comparison to $14 million, or $0.08 per share, just one year prior. During this same time, Kodiak’s quarterly revenue rose to nearly $86 million. This is up from just over $22 million for the second quarter of 2011.
Kodiak has seen some wild swings in terms of share price over just the past year. To continue reading, click here.