Kaminsky's Call: Monitor BP Talks With Apache

It seems every Monday, investors digest the latest round of BPreports.


Three weeks ago, strategic partnerships were discussed. Last weekend, there was speculation of an investment in the Middle East.

This morning, two stories are tantalizing traders .

One regards Exxon Mobil and/or Chevronbuying all of BP, but it is not the one catching my attention.

According to several reports, BP is in talks with U.S. independent oil and gas producer Apache on a potential $10-$12 billion deal. If this deal comes to fruition, watch the media and Wall Street rush to make BP the headline.

My "Call-to-Action" is to instead monitor Apache, and here's why.

Apache has a reputation of grabbing mature assets on the cheap and squeezing substantial value out of them. There is a distinct possibility that the reported $10-plus billion asset sale could include BP's Alaska operations. These crown jewels of BP's could become Apache's treasure.

History has shown that companies often thrive three to five years after acquiring distressed assets.

If this deal does come to fruition, investors will most likely look back on this moment as Apache's buying opportunity.

So read about BP, and watch the huge volume spike in the stock. The real strategy, however, is to watch the buyer, Apache, and evaluate it closely.

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"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.

Gary Kaminsky does not hold any equity positions.

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