Southwestern Energy SWN Southwestern Energy Company (SWN) engages in the exploration and production of natural gas principally in the Arkoma Basin, east Texas, the Permian Basin, and the onshore Gulf Coast. It operates through three segments: Exploration and Production, Midstream Services, and Natural Gas Distribution. Exploration and Production segment engages in the exploration, development, and production of natural gas and oil within the United States, with operations principally located in Arkansas, Oklahoma, Texas, and New Mexico. The company is headquartered in Houston, Texas.

The company's utility subsidiary, Arkansas Western Gas Company, is engaged in the gathering, distribution, and transmission of natural gas to approximately 152,000 residential, commercial and industrial customers in northern Arkansas.

The stock is strong fundamentally with stellar sales growth and attractive earnings growth. The company recently announced earnings of 6 cents per share, representing a very large increase in earnings growth versus the same quarter in the previous year. In addition, the company indicated a large reinvestment program for new drilling activities.

Southwestern’s stock has an average trading volume of 6,100,300 shares per day. The company has annual sales over $1.49 billion and in percentage terms has a sales growth rate of over 82 percent per year which is an excellent fundamental.

This stock is in a distinct Elliott Wave-4 buy formation, projecting gains into the $59 per share area by the end of July. The company does have a liquid options market that currently extend out to January of 2010 allowing the options strategist more than enough time to trade this opportunity.

Figure 1: Daily Elliott Wave-4 Buy Pattern for Southwest Energy
(Source: Profit Source)

Happy Trading.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum
Listen to Jeff at www.ProfitStrategiesRadio.com