Josh Young
Hedge fund manager, energy, value, special situations

Barron's Recommendation Of Approach Resources Is Underperforming, Better Value Indeed Elsewhere

In September 2013, Barron's published an article recommending Approach Resources (NASDAQ:AREX). "It suggested that Approach has a very low cost basis for its Permian acreage relative to recent values achieved in joint ventures in "similar land". And it pointed to a "solid balance sheet", "plenty of liquidity", good Wolfcamp results, comments by the CEO, and growing earnings to suggest Approach might be a buyout candidate in the high 30's, versus a recent price of ~$25 per share."

In response to that recommendation, I published an article on SeekingAlpha dissecting that recommendation point by point, suggesting additional valuation criteria, and presenting an alternative investment that seemed more attractive on Barron's criteria and on my valuation criteria.

Here is the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
Annual subscriptions may be cancelled for any reason within the first 30 days and receive a full and prompt refund. Details