TGC and SGY

[Rugger2row]

Have been following this board for a while but this is my first post.

I have owned TGC for a while and I noticed a very large spike in volume today relative to where it has been. The price did spike but did tail down a bit during the afternoon.

I am definitely an amateur but this does look positive, especially on such a lousy day for stocks. I suppose it is important to look for a pattern...if volume continues to improve but what does it typically mean when volume increases about 6 times average on no news?

I am also curious what others think of SGY.

Any opinions are appreciated.

[LemonButt]

Welcome to the board. I'm a big Indians fan myself, but am a Cincinnati native. The entire market was up today and there was a big selloff in the last 30 minutes of trading, so I wouldn't look into today's activity as being a sign of things to come unless the activity has been consistent.

TGC has negative earnings and oil exploration in unchartered areas (wildcatting) is often times a scam to get money from investors. Considering the company has been losing money to the tune of 10 cents per share when the share price is only 50 cents, I'd avoid this like the plague. The market cap is also only around 33 million which means is subject to high volatility. The company had $1.9 million in revenues last quarter, which translates into annual revenues of roughly 4 average sized restaurants if that gives you an idea of what you are investing in. If you've made any money on this stock at all, I'd get out while the getting is good and get into something more secure.

SGY is another small cap company subject to volatility with $298 million in market cap and are also losing money. I'd stay away from them also primarily because hurricane season is looming and the bulk of their operations are in the Gulf of Mexico. I am weary of energy stocks right now with winter behind us (natural gas and heating oil) and the crash in energy prices and the data regarding a recover is less than perfect.

With that being said, I'm long on TNK which is a oil tanker operator. They have a solid revenue stream however due to the fact that they have long term charters signed as opposed to spot rate carriers who get a higher rate, but aren't guaranteed operating days or income. If you are looking to make a profit off of energy stocks, I suggest you ponder going short on LG as I have made money doing so and many others have as well

[skiracer]

this is what i like about SGY. i dont see much of anything in TGC and wouldnt be of the mindset to trade it.

[skiracer]

this is what i like about SGY and something that i do like about TGC
although i dont see myself making a play in TGC:



there are 3 distinct things which would lead me away from TGC. it is a penny stock, it is on the amex, and the 20 and 50 ema's are both below it's 100 ema and the price is still tracking below all of it's moving averages.

[Rugger2row]

Thanks

I appreciate your insight.

[skiracer]

i kind of like sgy because of its price and its chart. i am going to keep an eye on it. i would also gamble $625 or so to have 1000 shares of tgc just in case. im looking at the weekly chart for tgc. i love finding them in this stage of their cup base. two or three scenarios could happen with tgc. it could continue putting in its base by either dropping a bit more or it could remain basically rangebound and continue horizontally across its chart continuing its base and at some other point it should make a move up to start its right side of the cup base pattern. or it fails and goes down breaking the pattern. i think it is worth the play with a stop at say .50 so that there is some discipline and take the gamble of it beginning to make the right side and move up. the cup, so far, looks uniform. and cup shaped and that more times than not will lead to a continuation of the pattern.

[skiracer]

i think SGY is looking like a decent play right here. if it breaches it's 100 ema it could be clear sailing for big gains.

[skiracer]

SGY turned out to be a very nice setup and play. good show.

[mrmarket]

neither of these turned out too well...although they provided lots of volatility for the expert trend traders