Approach Resources Shares Popped: What You Need to Know
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.
What: Shares of oil explorer Approach Resources (NAS: AREX) jumped 10% in trading today.
So what: Look no further than a massive spike in the price of oil for the driver of Approach Resources' shares today. Oil is trading 4.8% higher today as investors bet that a little more certainty in Europe will help drive global demand.
Now what: Surprisingly there aren't a lot of oil and gas stocks jumping higher despite the popping price of oil today. Earlier this month, on a day when oil only rose 2.8%, stocks were popping left and right, but today Approach Resources is a lone wolf.
I don't see a big reason to change your investment thesis today. The rise in oil's price was inevitable and we're likely headed back to $100 before you know it.
Interested in more info on Approach Resources? Add it to your watchlist byclicking here.
At the time this article 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.