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Crosstex Energy, AŞ Message Board

  • lurkinlow lurkinlow Nov 30, 2004 4:18 PM Flag

    Buying Opportunity??

    Yorktown announces they are distributing shares to partners and the stock drops nearly 10%! Is this a buying opportunity?

    Number of authorized and outstanding shares has not changed. Volume is up about 12-14X and I suppose there may be excess selling for a few days, but the fundamentals have not changed.


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    • "Number of authorized and outstanding shares has not changed."

      Are you sure about that? The press release made it sound like extra shares would be distributed. I'm sure the concern is with dilution.

      I certainly hope you are right. Please expand.

      • 1 Reply to kmr123999
      • My understanding is that Yorktown is distributing (to their investing partners) shares they already held in the partnership. But I am not sure. I may call the company tomorrow.

        I believe the downward pressure on the stock is from those partners turning around and selling the shares into the market. I would expect the typical investor in Yorktown would likely be interested in more aggressive investments than holding listed securities. JMHO.