Bought to open ECR
Bought 4,000 shares of ECR at $2.786. Total cost including commission is $11,151.99, or $2.788/share.
First target is $3.50, which is a high volume level, and the floor of the June gap-down.
ATR(10) is 37¢. That would indicate a stop loss around $2.40. This is a volatile stock, though, and it could gap towards its 100SMA at $2.21, before anyone can sell. In that case, I would let the stock recover. I won’t stay in, if the stock closes below that level, though.
I might scratch this position tomorrow, if the jobs report is truly shocking. Otherwise, I would like to see how gas prices perform over the next couple of weeks, especially against the backdrop of record heat in the Eastern U.S.
This company is a domestic oil & gas producer with acreage in the Marcellus and Utica shale. Natural gas has recovered recently from a multi-year low, put in earlier this year.
Also, ECR has distinguished itself from other small E&P companies by raising equity, last month. While the dilution really hurt the stock price over the past 6 trading days, it removes an uncertainty overhang. Moody’s acknowleged this in their rating upgrade issued today.