Andres Rueda
Value, long-term horizon

The Forest Oil Corporation Merger: Two Debt Drunks Leaning Against Each Other?

The story of Forest Oil Corporation (NYSE:FST) has been long and painful for investors. Ten years ago, on July 30, 2004, the company's shares closed at USD$28.29, and were on a smooth upward trend which became frenetic as the fracking revolution picked up steam. The stock soared to a price of USD$77.97 on July 1, 2008, as the company rode the fracking boom through a binge of expensive drilling and acquisitions. Most recently, Forest Oil's share price has generally fluctuated around USD$2 per share, closing just shy of that mark (at USD$1.97 per share) on August 1, 2014.

The story of Forest Oil is a common one during the U.S. gas and oil fracking boom, during which in...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
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
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details