Stock to Sell #3 – Newfield Exploration Co. (NFX)
Newfield Exploration Co. (NYSE:NFX), a domestic oil and natural gas exploration and production company, has had its earnings estimates revised downward by several analysts following a disappointing Q4 report, which missed estimates by a wide margin. High debt and falling production combine to limit future earnings, and insiders have been heavy sellers. Q1 2013 showed a slight improvement, but NFX still had a net loss of $0.06 per share.
The stock is in a bear market, and in April, it broke below its bearish support line. A recent rally from its low at $19.57 resulted in a rebound, and on May 3, it closed above the 50-day moving average. This positive short-term development could take the stock to $24 where it should be sold.