Exco Resources, Inc. (XCO) is a Texas-based onshore oil and natural gas company.
This stock has been slammed and recently hit new 52 week lows at $6.80 over concerns about low natural gas prices. This company has some interesting people involved in its operations. World famous oil investor T. Boone Pickens is a board member, as well as a major stockholder (over 9 million shares). At only $7.77 per share the stock looks deeply undervalued.
The company is profitable and the book value is $8.07 per share. XCO pays a dividend of 16 cents per share which is equivalent to a 2.3% yield. Expect an eventual rebound (as well as volatility), but buying now while the stock is low is a great opportunity to begin.
Another insider (Wilbur Ross, an owner of more than 10% of the company, as well as a Miami Dolphins owner) has purchased multiple times. He is obviously dollar cost averaging.
Today, I purchased an initial stake of 150 shares (at around $7.50), and will continue increasing my investment. I will have a standing sell order set at $20.
Disclosure: I am long on XCO, and will be increasing my position.
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