Is Anadarko Undervalued in Todays Market?
Anadarko Petroleum Corporation (NYSE: APC) shares dropped sharply lower after oil prices moved below $50 per share for the first time in over 20 months. However, CNBC’s Jim Cramer remains somewhat optimistic, despite the lack of a large dividend, on his Mad Money Lightning Round. The hedge fund manager turned television star noted that the company is being valued at $10 a barrel. As a result, Cramer is more bullish on this company over others in the sector, but noted that dividend-payers were the best bet. Oil prices fell below $50 a barrel as consumer demand for gasoline in the U.S. and Europe continues to drop sharply. The drop in oil prices could start causing problems in the sector as large players start to cut down on their projects. Many of these projects used oil estimates of $60 a barrel when oil was trading well above $100 and therefore may end up losing money if prices drop lower. The result could be lower supply if prices are cut and that could help prices recover in the lon
