We have purchased 5,000 shares of Southwestern energy (NYSE:SWN) at $4.045 today prior to market close.
Natural gas is a hated sector, but this stock has lost 25% of value in a week. It is profitable and trades at 6 times trailing earnings and just over 3 times forward earnings. It may take a while for the stock to bounce back but this reminds us very much of oil stocks in early 2016.
We have added this to our “bad beat investing” portfolio which seeks to find incredibly deep value, or market insanity the leads to ‘bad beats,’ or losses that should rarely happen. Other purchased holdings in this portfolio include Tanger Factory outlets at $23.50, and Foot Locker at $33.77.
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