I agree with the article but unlike the analyst I see the military takeover with broad popular support as a plus not a negative for price action. Furthermore I expect APA to announce some kind of transaction in Egypt to validate the cost on their books. Perhaps the Chinese will nibble. Lost in the headlines today was 20 people killed in sectarian violence in Iraq and that hasn’t kept the Chinese from investing there.
Egypt Turmoil Creates Apache Buy Opportunity
Apache (APA: NYSE)
By Guggenheim Securities ($80.23, July 5, 2013)
Apache’s stock price has been under pressure over the last few days in the turmoil of Egypt.
The military-led removal of President Morsi from office was completed after the market close on Wednesday and we believe this will probably lead to further downward pressure on Apache (ticker: APA) stock.
While Egypt is a key element in Apache’s current portfolio of producing assets, we see any weakness in the stock in the coming days as a further buying opportunity. We base this on our belief that there is limited risk of complete closure of operations in the country and that there are many other (and more material) growth opportunities elsewhere in the portfolio (namely the U.S. Onshore).
[We rate Apache at Buy.]