An oil and gas player that insiders are snapping up a large amount of stock in is Exco Resources (XCO), an independent oil and natural gas company, engages in the exploration, exploitation, development, and production of onshore U.S. oil and natural gas properties with a focus on shale resource plays. Insiders are loading up here into weakness since this stock is down over 30% so far in 2012.
Exco Resources has a market cap of $1.5 billion and an enterprise value of $3.35 billion. This stock trades at a reasonable valuation, with a price-to-sales of 2 and a price-to-book of 1.15. Its estimated growth rate for this year is -101.8%, and for next year it's pegged at -300%. This is far from a cash-rich company, since the total cash position on its balance sheet is $30.57 million and its total debt is a whopping $1.92 billion. This stock sports a dividend yield of 2.4%.A director and beneficial owner just bought 700,000 shares, or around $4.74 million worth of stock, at $6.57 per share. >>5 Energy Stocks T. Boone Pickens Loves Right Now From a technical perspective, XCO is currently trading above its 50-day moving average and below its 200-day moving average. This stock recently traded down to around $6.20 a share, where it subsequently found buying interest that has now pushed it back above its 50-day moving average of $6.91 a share. That move has now pushed XCO within range of triggering a near-term breakout trade. If you're bullish on XCO, then I would look for long-biased trades once this stock breaks out above some near-term overhead resistance at $7.20 a share with high-volume. Look for volume on that move that registers near or above its three-month average action of 6 million shares. If we get that action soon, then I would target a spike back towards its next significant overhead resistance level at $8.20, or possibly even its 200-day moving average of $8.75 a share. I would simply avoid XCO or look for short-biased trades if it fails to trigger that breakout, and then drops back below its 50-day moving average of $6.92 a share with high-volume. If we get that action, then XCO will likely re-test and possibly take out its next significant support zones at $6.40 to $6.23 a share. Exco shows up on a recent list of 25 Energy Stocks to Considers.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV