Market is irrational. No news over the weekend, yet it drops $2.00. This happened last week on Monday and on Tuesday it bounced back a good bit. I don't see how it is tied to Yorktown unless some investor is just dumping on Monday of each week....
Volume hasn't been unusually large and the intra-day drops aren't on outrageously large sells, but it looks like the increased liquidity due to Yorktown isn't helping XTXI gain any traction. Given XTXI's projected dividend growth, I think XTXI is fastly becoming a very good buy. Management forcasted a $3.60 dividend by 3Q07, which probably puts us on track for a $3.00 dividend by year end. I am assuming we essentially will see a .05/Q increase in the dividend for the next 7 Q's, which would put us just over a $3.60 dividend in the 3 Q of 2007.
If you look at the closing prices, this is below the previous inflection point. And there is the probability of going below that. Not a bad thing at all if you still have some shares to fill your target count :-)
But, I think there was also an issue with a pipeline that they needed to fill after a customer was getting bought. Earnings are never as smooth as Wall street wants to have them and we should not be biting into the game of expectations. We buy assets and we buy management, not future promises. We should be evaluating promises with our eyes open. Perhaps the seller knows more than we do.