Views: 3476

Reply to This

Replies to This Discussion

Another article on IPO release and how much it raised.

Issued at $ trading at $26.

And the slide continues....Now trading at $25.3


You're probably right.....

Nope, better wait a bit longer...closed today at $21.40.   The slide continues.

Interesting that Eclipse has a board of nine members: the two Hulburt brothers and four partners from Encap the financial  backer of Eclipse, plus three others.  IMHO Encap is very much in charge here.

Oh yeah, and not very happy with the bro's stock performance post IPO lol....

Now is the time to an article recently that stated the things to invest in in this oil and gas boom is the small companies that drill wells or that support the oil industry in some way. Article commented on Rice Energy and JB Hunt trucking Co. I will try to find it and repost....very interesting.


  • ECR has one of the most absurd valuations I've seen in a long time.
  • ECR is currently valued at 169X trailing 12-month sales when the average for the sector is 3.41X.
  • ECR appears to have no plan to manage cash flow long-term and is currently paying debt with more debt, literally.

Anymore these days when I see Goldman Sachs involved as a main underwriter on anything other than a lead pipe lock IPO I'm automatically considering the stock for a short. This particular opportunity, although primarily underwritten by Citigroup - which is also almost always a leading indicator for poor returns, is another great example of a Goldman magic trick. I mean nobody can get an investor to stare at the magician's left hand while the right hand pulls the rabbit out of the hat on the IPO roadshow. This initiation article will focus on Eclipse Resources Corporation (NYSE:ECR), a bloated, absurdly valued Oil and Natural Gas E&P company which is ripe for a short. This article will make the argument that based on price to sales multiple peer comparison, the incredible and growing debt burden and expense, and the poor cash management as a result of short-term and ongoing CAPEX that the company will be valued considerably lower on all durations.

Excerpt from a recent SeekingAlpha article.   It's a good read.   The conclusion is to sell short now and wait till the stock tanks before buying (I'll pass).  Closed today at $20.7.

Down another little bit.   Are we in free fall yet?   When will it rival Magnum Hunter in price?  

I'm sure all those investors who listened to the brother's glowing presentations are SO happy.  lol.....


"Now is the time to buy..."

It's never advisable to try and catch a falling knife.


© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service