SandRidge Energy Inc (SD)

[jtomm]

A Tale of Two Stocks

No telling what causes certain stocks to move in certain ways. A lot of it is just luck. I've linked to the post from 15 days ago where I speculated that we were bottoming. Just the opposite of a blowhard post, this shows how it's just trying to play the probabilities.

I bought two stocks that day: SD and SBOW. SBOW is also unhedged, but leveraged.

Bought SBOW at $27.64 and it went almost straight up for like 6 days so I sold at 36.75, because it seemed like it had run way too far way too fast (it's now at $46. Oops! lol)

Bought SD at $15.01 and actually thought it had the better chance to be a runner -- unleveraged, lots of cash (will probably have almost $5 per share after earnings and maybe they will announce a dividend or buyback or something). It's struggling to hold $19

SBOW up about 66%, SD less than 26%. I have no idea why the huge difference. Anybody can come up with a reason after the fact (when you know the answer), but it's almost impossible to know in advance. Luck is always a big factor. Hopefully it suggests that SD could still run quite a bit. But just look at the difference in the steepness of these two charts:

SBOW: https://stockcharts.com/h-sc/ui?s=sbow&p=D&yr=0&mn=10&dy=0&id=p01926711171

SD: https://stockcharts.com/h-sc/ui?s=SD&p=D&yr=0&mn=10&dy=0&id=p64293747708