$CRK Is A Bet On Cowboys' Owner Jerry Jones
The oil patch is full of boom and bust opportunities. One pick that we like is $CRK.
With $CRK, you're betting that nat gas prices have finally bottomed and that Dallas Cowboys owner Jerry Jones has found a hidden diamond in the rough.
Yesterday's headlines:
Comstock Resources (CRK +19.5%) spikes to its highest levels in six months on much heavier than usual volume after controlling shareholder Jerry Jones offered upbeat comments on CNBC about the company's acquisition of Covey Park.
"Comstock has one of the best positions of leases relative to the cheapest place... in the world to get gas to the market," Jones told CNBC this morning, adding that as a contrarian, he believes now is time to buy into natural gas.
CRK "has done a great job with Covery Park in acquiring a lot of leases" which are "in the pathway to the great markets of the Gulf ."
With $CRK, you're betting that nat gas prices have finally bottomed and that Dallas Cowboys owner Jerry Jones has found a hidden diamond in the rough.
Yesterday's headlines:
Comstock Resources (CRK +19.5%) spikes to its highest levels in six months on much heavier than usual volume after controlling shareholder Jerry Jones offered upbeat comments on CNBC about the company's acquisition of Covey Park.
"Comstock has one of the best positions of leases relative to the cheapest place... in the world to get gas to the market," Jones told CNBC this morning, adding that as a contrarian, he believes now is time to buy into natural gas.
CRK "has done a great job with Covery Park in acquiring a lot of leases" which are "in the pathway to the great markets of the Gulf ."
Trade active:
Comstock Resources (CRK +10.8%) cranks out another 52-week high, capping an 80%-plus run-up since Aug. 27, as investors take a liking to the Texas oil driller that boasts an asset that rivals don't: Jerry Jones' bank account.
CRK management recently said Jones is not "afraid to inject another $1.1B into the company when the opportunity presents itself," which would match the amount Jones already has contributed to the company over the past 18 months, according to Seaport Global analyst Mike Kelly, who says Jones' continued presence is a major positive for the driller at a time when many oil and gas firms find it difficult to access the capital markets.
Jones defended his bullish take on shale gas earlier this month, despite the 14% slide in U.S. nat gas prices this year amid a supply glut.
Seaport reiterates a Buy rating on CRK and hikes its price target to $11 from $8, saying the driller has "a long runway of some of the highest rate of return inventory in the space... and near unrestricted access to the Bank of Jerry Jones."
CRK management recently said Jones is not "afraid to inject another $1.1B into the company when the opportunity presents itself," which would match the amount Jones already has contributed to the company over the past 18 months, according to Seaport Global analyst Mike Kelly, who says Jones' continued presence is a major positive for the driller at a time when many oil and gas firms find it difficult to access the capital markets.
Jones defended his bullish take on shale gas earlier this month, despite the 14% slide in U.S. nat gas prices this year amid a supply glut.
Seaport reiterates a Buy rating on CRK and hikes its price target to $11 from $8, saying the driller has "a long runway of some of the highest rate of return inventory in the space... and near unrestricted access to the Bank of Jerry Jones."
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We are not financial advisors. Always conduct your own research and read our full disclaimer at insiderfinancial.com/disclaimer/
