The daily chart
shows that KOS shares have been trading in an uptrending channel since the end of last year. Even though Kosmos Energy
has had a nice move off of the lows, the stock had still fallen more than 21% from last summer's high on the current bear
market in oil
. An initial stop loss on a long stock position can be placed under $8.40 (under Tuesday's low). Near-term resistance is between the $9.50 and $10 level (stock failed at the 200-day SMA
in September and November).
On February 23rd, KOS reported Q4 EPS
of $0.33 vs the -$0.07estimate on revenue of $178.1M vs the $150.84M estimate. They sold 2.4M barrels of oil
compared to 1.9M barrels of oil
in Q4 2013
. The company trades at a P/S ratio of 3.62x and a P/B ratio of 2.72x.
Options in KOS were extremely active today (49x the average daily volume
). The bulk of the trades were in July call buying and put selling (implied volatility
rose 9.3% to 61.07).