Tag - Pdc

Yesterday, oil rallied to close above $81 a barrel, the first time the precious commodity has hit that level in 2009. Oil prices gained momentum after the U.S. government released a report showing that crude inventories rose by half a million barrels fewer than expected.   

The rise in oil prices, and many other commodities prices for that matter, has many wondering if the market is too bullish given that economic growth is uncertain. Plus, much of the rise in oil has come on the back of a falling dollar.

You’ve probably heard that renewably energy sources like wind and solar will reduce the demand for oil. Government programs that incentivize their use have worked in places like Brazil. But overall, they haven’t slowed the relentless rise of oil prices.

While these factors might make the rise in oil prices seem unsustainable, it’s more likely that normal supply and demand relationships will resume when the economy gets back on track. In other words, higher prices are coming. Peak oil (the point when the world reaches a maximum rate of petroleum extraction, after which production will always be declining) adds an interesting dimension as well. Some experts think we’re past this point, some think it won’t arrive until 2020...

Global Consumer Acquisition Corp (Nasdaq:GHC.U), National Coal Corp (Nasdaq:NCOC) and Pioneer Drilling Co (Nasdaq:PDC) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

Hanger Orthopedic Group Inc (Nasdaq:HGR), Titan Machinery Inc (Nasdaq:TITN) and Pioneer Southwest Energy Partners LP (Nasdaq:PSE) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

When the going gets tough, the tough drill deeper. And when crude oil demand shoots through the roof, along with prices, exploration companies dig deep to expand their operations.

With oil futures prices running about double what they were a year ago, the oil and gas rigs of Pioneer Drilling Co. (AMEX:PDC) are staying busy, at roughly 85% of capacity going forward in 2008. Still the San Antonio, Texas-based company is expanding the scope of its capabilities beyond the contract drilling business that has long been its mainstay.

According to nine analysts surveyed by Thomson Financial, four rate Pioneer Drilling a “hold,” two call the company a “buy,” and three rank shares a “strong buy.” The median price target from Thomson is $18 a share for Pioneer, which closed Thursday at $16.50.

In mid-April, shares were trading consistently above $17, after hitting a 52-week high of $17.80 on April 16 — nearly double the 52-week low of $8.95 hit on Jan. 22. Historically, Pioneer Drilling traded as high as $23 in early 2006, but more recently, shares suffered a 4% retrenchment April 24 in a commodities sell-off that . . .