Energy XXI: A 12.7% Better Bargain Than When Busmire Bought

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on March 6, Energy XXI Ltd.'s Chief Financial Officer, Bruce W. Busmire, invested $104,250.00 into 25,000 shares of EXXI, for a cost per share of $4.17. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Tuesday, bargain hunters could buy shares of Energy XXI Ltd. ( EXXI) and achieve a cost basis 12.7% cheaper than Busmire, with shares changing hands as low as $3.64 per share. Energy XXI Ltd. shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of EXXI shares, versus its 200 day moving average:

Energy XXI Ltd. Chart

Looking at the chart above, EXXI's low point in its 52 week range is $2.30 per share, with $24.20 as the 52 week high point — that compares with a last trade of $3.68. By comparison, below is a table showing the prices at which EXXI insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
11/18/2014 Scott A. Griffiths Director 10,000 $6.63 $66,300.00
12/01/2014 Bruce W. Busmire Chief Financial Officer 20,000 $3.90 $78,000.00
12/01/2014 Hill A. Feinberg Director 25,000 $3.30 $82,500.00
03/06/2015 Bruce W. Busmire Chief Financial Officer 25,000 $4.17 $104,250.00

According to the ETF Finder at ETF Channel, EXXI makes up 1.39% of the SPDR S&P Oil & Gas Exploration & Production ETF ( XOP) which is trading higher by about 0.8% on the day Tuesday.

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