Is McMoRan Exploration’s Stock a Sell Now?

E = Equity to Debt Ratio is Normal

The debt-to-equity ratio for McMoRan Exploration is fine. However, the balance sheet could be a little stronger. While comparing McMoRan Exploration to Chevron Corporation (AMEX:CVR) isn’t exactly comparing apples-to-apples, it’s a good barometer. For more of an apples-to-apples comparison, Forest Oil Corporation (NYSE:FST) has been included.   

T = Technicals on the Stock Chart Are Poor

McMoRan Exploration might be a relatively new company searching for a big find, and that means investors should be patient, but the last year has been brutal.

At $8.48, McMoRan Exploration is currently trading significantly lower than its 50-day SMA of $11.54. It’s also trading significantly lower than its 100-day SMA of $12.32. And it’s trading lower than its 200-day SMA of $11.57.

 E = Earnings and Revenue Are Sporadic

This is normal for an Independent Oil & Gas company. Investors aren’t overly concerned with current revenue or annual revenue patterns. They’re more concerned with the company reaching and extracting black gold.

Quarterly earnings and revenue have also been sporadic.