Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Yesterday, Forest Oil shares followed the entire oil and gas sector south, but today investors got some good news. Canaccord Genuity upgraded shares from hold to buy this morning, giving a short-lived boost to shares.
Now what: As usual, the market cared about the upgrade for a moment, but the momentum didn't last. Shares are now up just 5% on the day, but that's still better than explorers and producers like Kodiak Oil & Gas (NYS: KOG) , which has fallen 10% today. I would be cautious buying into this move because oil will still drive the company's earnings, and right now, oil isn't priced attractively for producers.
Interested in more info on Forest Oil? Add it to your watchlist byclicking here.
At the time thisarticle was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.