EXCO Resources (NYSE: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 (NYSE:CHK) is probably the poster child for the sector, but XCO has been a short sellers' paradise too. Just recently, the company had to sell...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|