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

To: Spekulatius who wrote (56228)	11/14/2015 1:29:35 PM
From: E_K_S	Respond to of 79147

Re XCO I was trying to figure out what the insider's exit plans are and why Ross recently bought more shares this month. Also the new CEO (as part of his signing contract) was required to buy a substantial amount of the common shares that I believe he got well below a $1.00/share (so those are making money). I did look at the recent 10Q and they are covering all of their direct expenses (not depletion. So over time as they crank up production, asset value will fall if there is no substantial increase in NG prices. They do own a % of their gathering unit (part of that was already sold) but that value has dropped too. Could the common share buys by Ross just be a token signal to other common share holders that he likes the restructure opportunity? It was not disclosed who the new owners of the 'secured' debt are other than it was Private Equity. There was some speculation that Ross and others (including the new CEO's former private equity firm) are/were the backers but nothing yet disclosed from my search. My investment is small and this is one of my three distressed investments that have shown a possible exit path. The others have disclosed nothing other than firms have been hired to help resolve future liquidity problems. EKS