Why Ultra Petroleum Is Poised to Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas company has earned a respected four-star ranking.
With that in mind, let's take a closer look at Ultra Petroleum and see what CAPS investors are saying about the stock right now.
Houston, Texas (1979)
Oil and gas exploration and production
Chairman/CEO Michael Watford (since 1999)
Return on Capital (average, past 3 years)
Cash / Debt
$14.4 million / $1.9 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,582 members who have rated Ultra Petroleum believe the stock will outperform the S&P 500 going forward.
Moats and competitive advantages are hard to build; however, I would argue that Ultra Petroleum (UPL) has a decent advantage: the ability to drill for liquids at very low cost. In considering Ultra's ability to drill at some of the cheapest rates in the industry, it seems to be only a matter of time before they start turning around as the commodity pricing of liquids begins to increase again (which it will unless everyone actually believes that the recessionary global economic climate will last forever).
If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its four-star rating, Ultra Petroleum may not be your top choice.
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The article Why Ultra Petroleum Is Poised to Bounce Back originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Ultra Petroleum. The Motley Fool owns shares of Ultra Petroleum and has the following options: Long Jan 2014 $30 Calls on Ultra Petroleum, Long Jan 2014 $40 Calls on Ultra Petroleum, and Long Jan 2014 $50 Calls on Ultra Petroleum. 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.
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