EXCO Resources (XCO) is a pummeled stock. From being in the mid-$20s less than two years ago, it has drifted down to $6 per share of late. In mid-2011, management tried to buy the company out at a premium ($20.5) but was rejected for being too low of a price.
Wow! How times have changed. The big decline in natural gas prices, particularly the dry kind (methane), has hurt leveraged E&P companies like XCO. They've been saddled with poor earnings, little cash flow, and the need to raise capital. Chesapeake Energy (CHK) is probably the poster child for the sector, but XCO has been a short sellers' paradise too. Just recently, the company had...
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