Market Perform/Speculative - Price 38.85 on Sept. 10
by Morgan Keegan

The Continental story has improved remarkably in the Bakken [notably, the parts of the formation in N. Dakota] against a backdrop of generally higher oil prices. We think the stock deserves a premium valuation, given its immense running room in the play -- but we aren't convinced oil prices can move materially higher, even if the economy recovers as quickly as investors expect, given the already significant upward move so far this year. As such, the shares [of this independent oil-and-natural-gas exploration and production outfit] may be rangebound for the near future. We have boosted our third-quarter '09 and 4Q09 EPS estimates to reflect higher oil prices, but as our 2010 outlook remains unchanged at 60 [a barrel, versus around 70 currently] at this time, we have left next year's estimates largely unchanged. Five-year estimated EPS growth rate: 10%. Market cap: $6.6 billion.

Strong field

From a recent Mad Money show:"That's a very cheap natural gas and oil play but I'm only recommending companies with dividends. I like BP (BP) or Chevron (CVX )."

From a recent Mad Money show: "This is a remarkable decline. All of the high quality ones are down so much, I can't say no. This is where you pull the trigger."

a PE of 15, and a PEG of 0.32.

although not based in North Dakota, is an oil and natural gas explorer and developer which is the largest land leaseholder in the North Dakota part of the Bakken shale.

From a recent Mad Money show:


"I have liked this one for 35 points now. I want you to take some off the table. I like it, but it's too hot."

good old USA oil

bakken oil schale

From a recent Mad Money show:

"I have liked this one for 35 points now. I want you to take some off the table. I like it, but it's too hot."