Thanks bluesky... As you stated: historic performance is favorable to share price appreciation.
As we all know too well here there are exceptions to that rule.
I have never been a holder of a stock that offered such rights. Has anyone else here and how did you make out on them? Is this usually considered a pro-shareholder action? Sounds to me most here believe this is all an attempt (by a few large shareholders) to capture the remaining shares of XCO at our future expense??
I don't care is it's us or we (since when is this an English class) the question remains. As probably does the result....shareholders get screwed in the end big-time by fast buck artists.
I see the one where they announced that Ross and Watsa would backstop the offering. Excuse me for asking but what's backstopping mean?
If they can make a killing by taking it private then doesn't logic dictate that XCO is being priced right now at a much lower theoretical value? I mean if there is potential to buy at say $5 and make tons off this purchase one is concluding that this company is worth much more than it's current price? If true, WHY is it so low right now? S-term traders playing the not-so-good-news as of late? And why is the short interest so high?
Much has been speculated on here about this rights action allowing the big boys to swoop up XCO and leave we petty cash players in the dust. How many shares would they have to buy in order to pull this play off? Why not just do it now?
This stock is up over 130% YTD. Today their news section displayed the following: Corpus Christi liquefaction project will cost about $11B to build. 2018' is the expected on-line date. You're talking over 5 years from now all the while spending $11B? A lot can happen between now and then in this world. Seems like the markets are way ahead of themselves on their euphoria??.
And I also watch COG and CRK. Most of these stock saw downward action as I alluded to with HEAVIER volume than normal which indicates to me anyway that this sector is not popular seeing how it was a major up day.
I watch various other XCO related stocks as do others here. And yesterday's over all performance by them wasn't good to say the least.
XCO DOWN 3.5%
ROSE DOWN 3.65%
CRZO DOWN 3.7%
SN DOWN 4.1%
FTTN UP 1.47%
EOG DOWN 3.23%
SD DOWN 1.27%
IMS DOWN .25%
UPL UP 1.6%
KWK UP .32%
FST DOWN 4%
CNQ DOWN .2%
Why would the top 5 and their 50% ownership allow/accept a BK end? I mean are they too much into the billionaire, Wilbur, to admit defeat and move on? Or did they get caught with a bad apple and refuse to accept it? I find that hard to believe.
Why would one buy out now when the price continues to drop substantially? I mean it's like I didn't fill my truck up the other night because we all know $3 gas is forthcoming.