FGI/HLX ole' J.L. stold 'em.... .4614 xchg ratio ! - wow.... gotta like FGI here.
... it appears Holloway is quite a salesman... HLX chose to take what does not appear to be that good of an exchange ratio - price; but hitching their wagons to FGI's star - has to be the ''kicker''...
I'll be curious to see the analysts reactions to the merger. The ''potential'' cost savings by consolidating these yards and personnel is huge ! - I like the deal for both sides actually - HLX's benefits are more longterm - to be realized by FGI being the stock more lkely to rapidly appreciate nearterm and FGI bought nice assets and diversified cheap !
OPEC is still pounding the table that prices will return to $18+ in ''weeks'' - they are going to be looking real stupid - ''if'' compliance is not outstanding. I'd have to think it will be - thus, giving some nice buying opps here... not everything is ''cheap'' but, there are sure 7-8 stocks looking real, real reasonable here... RIG heading the list...
ie: the questions on MEXP: --- in my opinion; the stock is falling as ''daytraders'' and individual speculators are selling due to impatience, in expecting the big pop to $4 which will probably occur on any announcement of refinancing the Bank of Montreal Loan - new financing etc... The ''just'' of the story - is that MEXP is NOT in any dramatic cash flow crisis - they do not have to take just ''any'' refi deal... that they are taking their time and not just refinancing the BOM loan into the first deal that comes along is good news imho. - yes; it's a buy sub $2 - put it in the drawer and check back come Novemberish and you'll be a happy camper. -- could be an interesting quick-trader when the refi news happens - but this is a longterm buy & hold stock - period.
A nice basket of Nat Gas stocks might be MEXP & PGEI for micro's, RRC & CRK for small caps, OEI HSE XTO for more mid-capish ideas and UPR, NBL for larger caps that still have some substantial upside - (OEI, XTO, UPR also have decent crude Oil exposure to share in the upside of OPEC's continued compliance) - HSE is one of my fav's here - big cash flow upside leverage to rising nat gas prices - maybe my favorite overall "Gas" stock...
If I had to just buy 4 stocks here - CRK, HSE, OEI, UPR. - moderate risk - high upside and leveraged to both a spectrum of Gas & Oil, but with a Nat Gas weighting overall in this mini-basket.
BR, APC & APA are also great companies - but a little pricey here imho. I'd buy MRO as a large cap instead - sub $27-28 ish. |
