Whiting USA Trust (WHX) Shares Plunge as Stifel Nicolaus Resumes at Sell, $7 Price Target

July 18, 2012 3:30 PM EDT
Get Alerts WHX Hot Sheet
Price: $0.61 --0%

Rating Summary:
    0 Buy, 0 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Shares of Whiting USA Trust I (NYSE: WHX) are getting absolutely slammed Wednesday afternoon, now down more than 32 percent to around $11.06. The sharp decline becomes even more notable when considering shares opened this morning down just 26 cents. Volume is extremely heavy Wednesday: nearly 3 million shares of Whiting have traded hands, compared to average daily volume of just 120,000 shares.

Traders are attributing the weakness to a new Sell rating from an analyst at Stifel Nicolaus. The firm resumed coverage and set a $7 fair value estimate, nearly 60 percent below the stock's closing price as of Tuesday.

Stifel Nicolaus called Whiting's segments "significantly overvalued" and noted an expectation for the depletion of the company's 9.11mmboe reserve by in the third quarter of 2015. When this happens, Whiting's time unit value will be at zero and the trust will be terminated, according to Stifel.

Visit our Analyst Ratings page to track all the market-moving analyst calls on shares of Whiting Trust.

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