Look, I have heard of giving a company the benefit of the doubt, but this ramp in Apache (APA) has taken on proportions that show there is too much enthusiasm in the oil patch.
Now I totally get that, with oil running, people will throw cash at anything.
I also think there is a lot of oil in them thar hills, the hills of Davis, where this Alpine field is in Texas.
But all that said, it will be a year before we know anything and that means you will have to wait an awful long time before we really know how big this field is, and until then we have to take Apache's word for it.
The good news is that Apache is a conservative company. The bad news is that this stock has soared as if this is the biggest find in recent history.
I have had Core Labs (CLB) on Mad Money multiple times and I recognize that Core is the scientist of the patch, best able to analyze how good a reservoir is, and they have hinted that there could be a huge find out there.
Maybe this is that find. They can't reveal clients.
Without independent verification of this find, though, I believe Apache will soon be too high.
If you do own some because you think the field is gigantic, sell some. It's just had too big a move and has had the wind at its back because of the climb in oil, one that may not last because in the end, despite the drawdown, we have a ton of oil all over the place and this morning's figure can only take us so far.