Old saying regarding a stock in free fall is "Don't catch a falling knife". You may not get cut but there is a good chance you will catch the blade and end up bleeding. Wilbur Ross has made a lot of money but even he is not buying any more shares of EXCO. If he thought this was the bottom don't you think he would be all in? Just saw in the Boston Globe that as of May 1, 2012 NSTAR is reducing natural gas prices to residential customers by 27%. Who knows where the bottom is? I do not own any shares but figure Wilbur Ross is a billionaire and he owns a lot of EXCO so I started watching. Would like to buy some shares but fear has overwhelmed greed.
The flared gas also spews at least two million tons of carbon dioxide into the atmosphere every year, as much as 384,000 cars or a medium-size coal-fired power plant would emit, alarming some environmentalists.
All told, 30 percent of the natural gas produced in North Dakota is burned as waste. No other major domestic oil field currently flares close to that much, though the practice is still common in countries like Russia, Nigeria and Iran.
vcan24, get a clue jackass. E&P companies only send natural gas to flare when no pipeline connection is available at well locations that produce liquids with residual gas. Even at $2 gas, they won't purposely burn off the gas unless there are no other options. Regarding your previous comment about flaring being toxic to the environment, do some research on how flares work. Maybe if your state allowed horizontal drilling, you could venture out to the field to see the whole process.
Ross has made a complete fool of himself with XCO.
Since January he's done nothing more than continue to throw good money after bad because he has an ego the size of Texas and did not want to admit how wrong he was. It's actually quite funny because it is the same stupid psychology you see many novice investors employ. Instead of cutting your losses, just continue throwing money at it because you think you know better than the market.
And, in the end, if Ross does buy the entire company, guess what - he's not going to make an offer which is good for shareholders, it's going to be good for Ross. So you can forget getting $10 for your shares if he wants the whole company. With the stock hitting new lows and resistance now solidly at $7, you'll be lucky to see an offer of $8 any time soon. More likely, he's waiting to see $3/share and major cash flow problems and can then walk away with it all for $5 and no fight.
I don't think Ross has made a fool of himself...in fact, he is brilliant...he can't lose...he knows this thing is worth $15-20 pps minimum in the long run > 2015 and he's positioned himself to own 20% of the company by next February...If natural gas rebounds then he probably doubles his money near term... if the stock craters, because they have to remark property value down, cut div, bank credit issues, etc etc, which btw gets announced next Feb, he'll be free and clear to tender them in at say $5 cash....and there will be little to do about it....so if you are a minority shareholder, you are long nat gas and short a knock-out....if the shares go to $3, u get taken out at 5 - think about how much that option is worth and the probability of that scenario? Right now, the market is telling us that that is a likely scenario