OIl should be selling off big time right now with the current storage capacity limits being talked about. My guess is the derivatives are keeping a floor right now on oil prices. So when these things unwind you'll see a big move either way in pricing. It can happen anytime now folks. Stay tuned.
I haven't done the complex math here with such a scenario but does anyone believe that the majority shareholders could buy the rest of XCO, if it drops down into cents on the dollar which would lower their average cost immensely, and then being the owners right out, could either wait for some type of a buyout deal or a rebound in oil/NG or liquidate the company by selling the pieces which might allow for a recoup of their initial investment?
If say they currently have a buyer at say $4 it would not be in their best interest to consummate such a deal for then they'd have no chance to recover what they have in this company for the most part?
Just asking a hypothetical question here. For if Ross's average cost is in the $15 range he is w/o a doubt losing millions of dollars now. Why not watch it sink to levels whereas at least he could double down and own it all and be free to do with it what is best FOR HIM?
Many other NG plays are owned by billionaires like Mr Ross and they too have been caught in these companies as have we. I don't follow that many NG plays so I can't comment with any authority as how they're dealing with these massive losses. I mean you either take your licks and exit Dodge City or you engage in some financial engineering big time.