After a run-up that lasted 12 months and was primarily fueled by speculation and hype associated with its Utica properties, Gulfport Energy (GPOR) is prohibitively expensive. There is so much air and hype priced currently into Gulfport Energy that it reminds me of Halcon Resources (HK) at $9. Gulfport has been banking on the Utica's oil hype since late 2012. That hype was strengthened by the company's press releases that were touting its 24 hour IP results which are media's darlings.
After all, Gulfport's tremendous price appreciation is highly disconnected from its fundamentals. This is why, when the stock was at $67.5, I noted in my article in early October 2013 that Gulfport was primed for a sell-off. The stock has dropped 16% since then and closed at $56.35 Monday. My bearish article is here.
In late October 2013, when Gulfport's stock was at $61.5, I also noted in another bearish article that Gulfport has already hit a turning point and the bleeding will continue. My article is here.
Both calls above proved to be correct in a very short period of time. I am re-visiting Gulfport now that the Q3 2013 report is out, and remain very bearish on this company for the fundamental reasons analyzed in the next paragraphs. From a technical perspective, Gulfport's stock is currently in limbo and the day is near for another leg down.