Oil price is moving north and EXXI moving south....not sure what;s sort of manipulation is happening. The reason I can think of is, short interest in Energy XXI Ltd. shot up by 6.6% or 1,724,279 shares. The final shorts are 30.5% of the total floated shares. The positions increased from 26,116,049 shares on June 15,2015 to 27,840,328 on June 30,2015. According to the per-day average trading of 2,577,551 shares, the days to cover are 11. The information was released by Financial Industry Regulatory Authority, Inc (FINRA) on July 10th.
closing price was $2.31 per share and maintains price-to-book ratio at 0.24 vs. an industry average at 0.59. In the last five years, the company’s full-year sales growth remained over 23.20% a year on average and the company’s earnings per share moved up by an average rate of 15.20%
In coming days....Berman maintains a ‘buy’ rating on the stock with a $5 price target. The analyst is remaining bullish over the company’s oil weighted asset base on the Gulf of Mexico. Additional catalysts going forward should come from enhanced liquidity levels as well as reduced debt levels and lowered operating costs.
Berman believes the deal takes the company’s liquidity to $1 billion. The liquidity levels could receive an additional boost on Energy XXI Ltd (NASDAQ:EXXI) pursuing further non-core asset sales.