Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: Tollkuehn One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5993  
Subject: Re: APA? Date: 6/18/2001 3:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have not used BI, but I have been reading about it and following this board for a few months. I work at an Oil & Gas company and know a little about the industry (not being modest, I really only know a little). So my comments may be more about the industry than about BI.

Apache has a good reputation in the industry as an Exploration & Production company (E&P). E&P companies (also called upstream) do well when oil and gas prices are high and poorly when prices are low. On the other hand, downstream companies (companies that refine petroleum and/or sell gasoline) tend to do better when oil and gas prices are falling. Integrated companies (that have both upstream and downstream) try to optimize results in high and lower price environments. If all of this is true, then Apache should do well while oil and gas prices are high or until it is bought by another company (there has been a lot of consoldiation in the industry).

What struck me as odd by one of the comments in this thread were the target prices listed for APA in the future. Another oil & gas company was featured in past months with outrageously high upside prices through the BI calculations. I know that this company would never attain those prices (it is financially impossible given the way that oil companies are valued). Therefore I wonder if APA's BI numbers might also be erroneous. Is it possible that BI does not work in certain industries?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement