Despite a run-up in the price of oil and gas stocks recently, due to expectations that oil production will drop, some players in the sector remain vulnerable. According to The Deal’s Claire Poole, there are five oil stocks that investors should consider selling. They include Approach Resources, Halcon Resources, Triangle Petroleum, Transocean and Goodrich Petroleum. While Approach Resources has cut its capital expenditures, it will continue to be under pressure with oil trading in the $50 to $60 range. Another candidate, Halcon Resources, is bleeding cash and is already over-levered. Triangle Petroleum earnings and sales are in decline and it also has a heavy debt load. Goodrich Petroleum also suffers from the low price of oil and debt on its balance sheet. Offshore driller Transocean has been criticized for having a lower return on equity than its peers and an older fleet.
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