Eclipse Resources

Article has details of Eclipse's IPO.

http://www.energyandcapital.com/articles/marcellus-and-utica-fracki...

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Permalink Reply by searcherone on June 20, 2014 at 4:14am

Another article on IPO release and how much it raised.

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/utica-...

Permalink Reply by The Hiker on June 20, 2014 at 6:47am

Issued at $27....now trading at $26.

Permalink Reply by The Hiker on June 23, 2014 at 6:00am

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

Permalink Reply by Paul Martinelli on June 23, 2014 at 6:06am

BUY BUY BUY

Permalink Reply by The Hiker on June 24, 2014 at 1:00am

You're probably right.....

Permalink Reply by The Hiker on July 21, 2014 at 10:29am

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

Permalink Reply by searcherone on July 21, 2014 at 3:35pm

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.

Permalink Reply by The Hiker on July 22, 2014 at 12:01am

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

Permalink Reply by catt on July 22, 2014 at 1:56am

Now is the time to buy........read 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.

Permalink Reply by The Hiker on July 22, 2014 at 11:35am

Get Short Eclipse Resources Corporation Before It's Too Late

Jul. 21, 2014 2:50 PM ET  |  4 comments |  About: Eclipse Resources (ECR)Subscribers to SA PRO had an early look at this article. Learn more about PRO »

Disclosure: The author is short ECR. (More...)

Summary

  • 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.

Permalink Reply by The Hiker on July 25, 2014 at 8:55am

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.....

ECR 
$19.89
 
Permalink Reply by Dexter Green on July 25, 2014 at 9:02am

"Now is the time to buy..."

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

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