What Covestor managers are buying: Continental Resources (CLR, CAT, LINE)

For the Pure Growth portfolio, Covestor model manager BSG&L focuses on companies with 15% ROE, good liquidity and a PEG ratio of less than 1.25. Current top holdings include Caterpillar (CAT), Linn Energy (LINE) and Peabody Energy (BTU).

On March 17, BSG&L added a position in Continental Resources (CLR), an independent crude oil and natural gas exploration and production company with operations in the United States. Zacks recently ranked CLR a buy due to its valuation relative to its peers:


We did see some movement in estimates off the good quarter, with the current year up 5 cents to $1.76 while the next-year estimate gained 28 cents to $2.31, a bullish 31% growth projection.


But in spite of the gains, the valuation picture looks solid, with a forward P/E of 26X against its peer average of 32X.

And Jim Cramer noted that CLR is “Saudi Arabia’s worst nightmare”

Continental Resources is the number one driller in the Bakken shale. … [T]he company has 30 stages of drilling planned for the future with 64% growth in Bakken drilling and an expectation to triple the amount of drilling there in 5 years. Hamm discussed the company’s clean drilling and increased hiring, two steps that will tackle unemployment as well as environmental issues.

Cramer is bullish on CLR and said, “You are Saudi Arabia’s worst nightmare.”

CLR closed at $68.23, up 2.97%, on 3/21/11.


“Continental Resources, Inc. (CLR): Zacks Rank Buy” Michael Vodicka. Yahoo Finance, 1/25/11. https://finance.yahoo.com/news/Continental-Resources-Inc-CLR-zacks-1175747289.html

“Cramer’s Mad Money – Continental Resources Is Saudi Arabia’s Worst Nightmare (3/15/11)” Miriam Metzinger. SeekingAlpha, 3/16/11. https://seekingalpha.com/article/258470-cramer-s-mad-money-continental-resources-is-saudi-arabia-s-worst-nightmare-3-15-11