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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (34979)	10/26/2009 11:57:10 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

Jack (19.07$) Don't know jack about JACK <g>(don't like their menu either) but the stock does look cheap. In for a few shares (appetizer position). Selling franchise restaurants has improved their balance sheet quite a bit too. Peeled off a few CAH at 27.95$.

To: Paul Senior who wrote (34979)	9/16/2010 12:51:46 PM
From: E_K_S	Read Replies (2) \| Respond to of 78753

Hi Paul: RE: EXCO Resources Inc. (XCO) finance.yahoo.com I noticed you owned this company in 2009. Do you still follow it? I started a tracking position today. What attracted me to this company is that they recently purchased producing property (6/2010) owned by Southwestern Energy Company. excoresources.com News release from their Web site: "...EXO announces agreement to purchase properties prospective for the Haynesville and Bossier shales from Southwestern Energy Company (NYSE:SWN) ("SWN") for approximately $355 million, subject to customary purchase price adjustments. The properties to be acquired include producing assets, gathering lines and acreage in Shelby, San Augustine and Nacogdoches Counties, Texas and are located within the area of mutual interest established by the existing East Texas/North Louisiana joint venture with BG Group, plc (LSE:BG.L) ("BG Group"). BG Group will have the opportunity to purchase 50% of this acquisition..." I like that they got producing wells w/ the gathering infrastructure already in place. "...The assets include producing properties with current gross production of more than 51 Mmcf per day (17 Mmcf per day net) from 9 producing wells and approximately 20,000 net acres prospective for the Haynesville and Bossier shales...." On Wednesday they announced the completion of the sale of $750 million of 7.5% notes. This will be used to finance the transaction. My interest is in their gathering system(s) and the long term revenue stream(s) they can generate building future capacity as new NG wells come online. The purchase is already financed with long term debt and they have the opportunity to sell off 50% of their interests with their JV partner BG Group where they share common interests in similar properties near the same location. The risk is in the near term price of NG but I expect NG prices to rise at a faster rate than oil in the next 10 years. It's hard for me to value these particular assets as well as the company's other proved and probable reserves. They should be one of the lowest marginal cost producers since they own the gathering assets which saves them between 10%-20% per MMcf over the other operators in this area. Southwestern Energy Company Com (NYSE: SWN) is one I have been look at as one of the lowest cost producers. Even after their purchase, XCO's debt to annual net income is still quite low. When you compare the BV, Debt and other value measures between XCO and SWN, XCO seems like the better buy. Their BV is 1/2 that of SWN at 1.9x. XCO is also selling near thei 52wk low of $13.30/share. finance.yahoo.com EKS