At present levels REXX loses money on every bit of production. True, they have hedged, but that will only help in the short term. This dip in energy commodity prices will be a sustained one as production capacity has gone up hugely around the world. REXX stock is high risk, even sub $3.
it's a bit like panning for gold, or the torture technique embraced by the American govt: waterboarding: put the object/subject "underwater" see what is disgorged to the top and skim it off.....rinse and repeat until the substrate is hard or entirely skimmed.... look at the chart for FRO..... when the process is complete.... let rise 400%, issue a frothy story through a "news" conduit such as Bloomberg, and off load the product into the froth.... the cycle can take months, but it is reliable and controlled and repeatable if scaled with discipline.
and to those who look to natural gas to save the value of the stock (as opposed to the bonds):
'Raymond James & Associates cut its forecast for average 2015 Henry Hub gas prices to $3 per thousand cubic feet from $3.65, citing normal weather that will “unmask the bearish underpinning of the U.S. gas market,” J. Marshall Adkins, an analyst at the company in Houston, said in a note to clients yesterday.
The gas market “looks terrible” for 2015 and “has been structurally oversupplied for years,” Adkins said.'
single most important issue is how the debt will play against the stock in the coming months/yrs. right now debt comprises @90% of the capital structure of REXX. if oil remains @ $50 it is likely that REXX will default...so while shorts are piling on and there will be volatile bounces to play for the lucky, the stock could well go to ZERO at the end of the day
no rush to get in but no reason to get out. undervalued on the basis of financials and pipeline potential. as someone else posted, the "goon squad" is in charge of the stock since the pullout of Merck.