3SOF

David Randolph · April 29, 2008, 09:19:01 AM

As $NATGAS prices go up, so does my selling target for SD.

Trading plan:

Take profits at $67.98. Sell with a small loss if SD is set to close below $40.

David Randolph · April 30, 2008, 08:04:30 AM

Nothing goes up in a straight line and $NATGAS declined 4.3% yesterday. I guess this is because of a general expectation/fear (by the bulls) that the FED may pause at today's meeting and that could ease inflation pressures and hence put selling pressure in $WTIC, $NATGAS and other commodities. I'm not particularly concerned or interested in entering this macro-discussion.

SD responded with a 2.6% decline. No big deal. Most analysts see SD's NAV around $50 with $NATGAS at $8, and it closed at $10.84 yesterday, so ...

The trading plan is:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 01, 2008, 06:41:07 AM

The trading plan is:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 01, 2008, 06:24:23 PM

SD's consolidation seems to be near the end and the bullish trend should resume shortly.

The trading plan is:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 05, 2008, 07:30:51 AM

QuoteSD's consolidation seems to be near the end and the bullish trend should resume shortly.

It seems like it's happening.

The trading plan is:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 06, 2008, 07:40:40 AM

$NATGAS was up 3.7% yesterday, closing at $11.18, just a bit shy of a new high. SD is also in that situation.

The trading plan is:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 07, 2008, 07:54:44 AM

There were news out for SD this morning:

• SandRidge Energy, Inc. Announces Conversion of Preferred Stock
PR Newswire (Wed 7:00am)

This conversion was expected by all analysts following the stock. However, on their estimates they were considering the preferred shares would be converted into 22.3 million common shares, but, because the share price went up, in reality they are being converted into "just" 18,810,260 shares of common stock.

So, since the share count will be less than expected, this will add a few extra grains to EPS estimates.

SD closed at a new all time high yesterday.

The trading plan remains:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 08, 2008, 07:20:46 AM

SD's 1st quarter results will be released today after the close.

Analysts are looking for $0.14 EPS, on average:

Goldman Sachs has the highest estimate, at $0.19, whatever that's worth.

I'll keep respecting the trading plan:

Take profits at $65. Exit with a small loss if SD is set to close below $40.

David Randolph · May 09, 2008, 09:04:58 AM

SD's results were out:

• SandRidge Energy, Inc. Reports First Quarter 2008 Financial and Operational Results
PR Newswire (Thu 4:11pm)

The stock is up in the pre-market due to higher than expected adjusted EPS of $0.19 (remember, that was Goldman Sachs estimate). However, due to losses in derivatives of $NATGAS and $WTIC, the company reported a loss of $66.2 M.

This tells me SD is short $NATGAS and $WTIC futures and I sure don't like that.

Trading Plan:

SELL.

News:

SD