I would have been scared out of this stock. Whatever the reason for the CEO switch this company is likely to be not only fully intact but in better shape now than before. I am buying on the way down. This stock could shoot up to $6 in a heartbeat and is not likely to go down much more (IMHO).
I now have a very material position in XCO. Nonetheless I would consider buying more if it goes to the $4 range. Shorts will use any excuse to manipulate a stock. Still I am not sure that eliminating the dividend is a bad thing. It may depend on the surrounding story that management provides. This company has management that is sensitive to the stock price. If they cut or eliminate the dividend I suspect they can frame it in a positive fashion if possible.
Talk about luck. I sold BTU yesterday when it was up and bought FSY when it was down. Today SFY is up and BTU is taking a big hit. I have a very good feeling about SFY. Truth is it is more than a feeling. This is a top value play. In addition, the international political situation can only help this industry by speeding up its destiny.
For exposing the result of of country's stupidity in not allowing the NG exporting process to proceed expeditiously. It is not just about economics. There are political and military ramifications to dumb energy policies. Europe is at the mercy of the Russian Bear for natural gas. If we had our export facilities ready then the Europeans could back us with economic sanctions without fear of energy starvation. As it is they cannot.
Hopefully our government will now approve all the pending export facility applications with haste.
You have a point in that any announcement could instantly cause a stock jump. I don't know when but the good thing is it is a when and not an if.
Some want the dividend eliminated to conserve cash flow. Can't tell if it is priced in or not. Don't really care as I don't believe it will have a material effect.
I had a relatively small position that I bought recently but went half hog today. Had to sell BTU which is also a good investment, but at these levels and at this time SFY appears to be the better value. I am up already.
Also added to SD and XCO. For those who live on the wild side and buy non energy SNTA is an interesting play presently as the shorts have done a good job there. Back to SFY, I see a very limited downside and a strong possibility of moving up 5 to 10% by the next earnings release. More important however is that I see a 30% upside which can happen in less than a year and probably more upside after that (IMHO).
I make good money on boring stocks. I can watch them grow for years. Eventually however you can harvest. Patience is an investors best friend. The skill of doing nothing is difficult to develop.
Not sure if it is positive or negative development but I am sure that the shorts have pushed the stock price below where it should be. I sold all my shares immediately upon hearing the news at $6 anticipating a short attack. I bought back all my shares today and increased my position by 250%. I was fortunate enough to get a large amount below $5.30. Been at this game for a while. The news will probably not have a material effect from what the stock price was before the crash. Therefore I would expect to see $6 in a couple of weeks at the most. I do make mistakes but I don't feel that I am likely to have made one today. After all, what reason can the shorts give you to sell. They don't know anything more than I do.
Why were you wrong? Because the shorts manipulated the price down? No a way to play the market. What about the company changed. Nothing. Should news that effects the value of the company patents comes out, then you may, or may not, be wrong.
The only obvious thing here is that you are a short trying to scare out the retail longs. I am a buyer here.
The shorts now entering are opportunistic. Uncertainty brings fear. The abrupt change of the CEO took many by surprise. I don't blame the shorts for jumping in here. The problem for them is that they have no real substance to work with. There are no new negatives about the company. The smart shorts will cover very soon. They may even go long. Most shorts are smart. Therefore I see an immediate stock recovery.
Too much internal turmoil for a conference. The whole company needs to be on the same page during a presentation. They will be but they are not ready yet.
I am long here buying back my shares today for less than I sold them but this is not a nest egg stock. You shouldn't put all your eggs in any basket but especially in a small cap bio-tech. The odds are good you will be lucky if you hold but owning too much of any stock often causes bad decisions. Truth is we will probably go down from here but I don't want to risk losing the upside. Good luck to us both.