Anadarko Petroleum Corp. (APC) – This major independent oil and gas exploration and production company, with operations primarily in the U.S., the deep water of the Gulf of Mexico, and Algeria, is in a consolidation that began early last year. After a $4 billion settlement with BP (NYSE:BP), the focus can now shift to APC’s top-tier exploration and development portfolio.
Earnings are estimated to be $2.95 in 2011 and $3.05 in 2012. Recent developments in the supply of natural gas should help APC’s bottom line. On Jan. 31, the Trade of the Day said, “The stock has been consolidating within a massive “V” formation with a bottom at under $60 and a neck line at $84.” I also said, “The 200-day moving average at $75 should hold any pullbacks, and so that is the preferred buy point.” But yesterday APC broke through the neck line at $84. Buy at the market. The trading target is still $110.