9.8

catchy name

Great ng play

Goodrich Petroleum (GDP) was downgraded from Neutral to Reduce, Suntrust Robinson Humphrey said. $30 price target. Valuation call, following the strong first quarter results.

Insider purchases can often be viewed as people inside the company seeing value in their own stock. Goodrich Petroleum is one such company that has recently seen some active insider purchases. Director Josiah Austin bought 270,000 shares of the company in December for a price range of between $22.54 and $23.50. CEO Walter Goodrich purchased 10,900 shares for a price range of $22.49-$23.86. COO Robert Turnham also bought shares last month. And while the insider purchases caught my attention, there are other reasons to like this company.

The company reported 14% sequential growth and 40% annualized growth in average net production volumes to 46,500 Mcf per day for the third quarter. Cash flows climbed 71% from last year's levels to $19.2 million. However, Goodrich recorded a net loss of $23.7 million, or 0.94 cents per basic share, as compared to a net income of $6.7 million, or 27 cents per basic share, in the year-ago quarter. The company plunged to the black due to $14.8 million of non-cash adjustments to deferred tax asset.

In early December, the company offered an additional 5.8-million-share public offering, generating net proceeds of about $145.4 million. Goodrich plans to use most of the proceeds to repay debt. The company has been actively implementing cost controls, while increasing its production, which will likely boost earnings.

Analyst Ellen Hannan of Bear Stearns issued an outperform rating on the company, but reduced the price target to $34. Hannan said in a note to clients that "a continued ramp up in production volumes, coupled with declining costs, could support a higher price objective beyond year-end 2008."

Goodrich Petroleum (GDP) was upgraded to Buy, Suntrust Robinson Humphrey said. $26 price target. Company offers excellent exposure to the natural gas market, but the stock is trading at 2-year lows.

Goodrich Petroleum (GDP) was upgraded to Neutral, Suntrust Robinson Humphrey said. $32 price target. Stock looks attractive, following the recent pullback. The company also may be able to expand its credit facility, which would help boost returns.

Goodrich Petroleum (GDP) was upgraded to Buy rating from Under Perform at Jefferies. Price target jumps to $37 from $28 on growth of prospective asset base in Cooton Valley/ James Lime.

Goodrich Pet.

9.6, 42.91%