Putting in bids to match asks as he is able to push down the share price.
You need to add another arrow to your due diligence quiver. Click on the Investor Relations / SEC Filings link on XCO's website, click on the Word, Acrobat or Excel icon associated with the second 8-K filed on 11/25/13 and read. Summarizing what you will read, WL Ross and Hamblin Watsa agreed to buy any shares not exercised in the rights offering to ensure XCO obtains the desired funds. Those agreements are referred to as backstops.
I was an "A" student and did score in the 99th percentile on the GMAT verbal section many years ago but don't know that makes me a grammar expert. I obviously am more familiar with Seeking Alpha's contributors than you.
It's not an "outfit" but individual contributors with limited knowledge and their own opinions, just like on this message board.
Would expect environmental remediation and personal injury claims coverage, just like for Macondo, but damages related to fraudulent transfer typically are excluded under liability/D&O/E&O policies. We'll have to see how that plays out if judgments against APC are upheld. Fully expect either party to exhaust available appeals if damages awarded are not in their favor.
"The Company remains confident in the merits of its position and does not believe a loss resulting from litigating the Adversary Proceeding is probable. Accounting guidance requires that contingent losses be probable in nature for loss recognition to be appropriate. Accordingly, the Company’s Consolidated Balance Sheet at September 30, 2013, does not include a loss-contingency liability related to the litigation of the Adversary Proceeding." (# 12, Tronox Litigation, Notes to Consolidated Financial Statements, APC 09.30.13 10Q)
You won't want the same valuation as APC after tomorrow. APC did not set aside a reserve for what may be a multi-billion dollar liability, pending appeal of the bankruptcy court's authority.
Can't wait for details. APC thought they could prevail and did not set aside a contingent reserve for the liability. It's a short opportunity unless Judge Gropper lets them off easy until they can win on appeal that a bankruptcy court has no authority to render judgment in a fraudulent transfer case.
RE: " I have said, and I maintain, Ross and his cohorts will exercise their rights and those of all the common folk who don't." Aren't you the resident genius? Anyone reading the Nov 25 Form 8-K's (or just hearing about the backstop) knows that's exactly what happens.
Crude prices dropped but bounced back. Nat gas prices are up. Saw CPE announced power loss due to severe weather has reduced production in the Permian Basin. Seems APA's drift down commenced when talks with Sinopec to buy into Kitimat and with YPF to exit Argentina were leaked. Is this price action technical or fundamental?