I like this secondary for several reasons. Just the fact they can do a secondary offering is positive. Using it for exploration, paying down LOC or buying good assets is fine with me. Still think the company should be just north of $2.00. Hedges at $50 are ok for AXAS once the window opens and with secondary it could. Still all kinds of private equity money out there. WTI could be north of $50 tomorrow. Buy at these levels.
GDP is now BK. Was a high flyer and had a great track record finding NG. But leverage killed them. That's the beauty of AXAS. No long term debt and use of the LOC is tempered. $45 is a decent price for AXAS to hedge but if they can pick up some cheap assets......Private equity is out there buying up everything. Even they know WTI is going higher.
He's out because he's an advisor to Trump. Trump doesn't like China. Of course making $2 billion is another good reason. We now know why stock fell from $110 to $105; earnings to $99; but this sell off is crazy. Apple has some issues but SE wasn't sold last quarter and services are growing. Buying Harmon instead of Tesla or GoPro makes sense. Music needs a kick in the #$%$ so the Beats buy hasn't paid off yet. Could Cook be distracted with new HQ buildings going up?