RE:Very low risk purchase ARX stockSomething we can agree on. Despite it not always meeting every investor's expectations, I always felt ARX had relatively little downside risk. This, in conjunction with it's world-class properties, made it an ideal long-term hold for me and I have not been disappointed.
MyHoneyPot wrote: ARX with its strategy of lowering the currently FCF by 40% has really done two things.
- They esentially have a For Sale Sign on the Company (Artificially Depressed Share Price)
- Reduced the risk to buy the stock, because you know Q1 2023 FCF increases 40%
They have also make their case for their own buybacks, however the real cost of the buyback shares should have about 2.5 billion dollars added to it, the FCF lost as a result of their hedging strategy is what actually makes it worth while.
ARX is really lower risk from the investor perspective because of the huge discount it is trading at. Really even if commodity prices come off, do you think you will see gas before next summer at less than $3.20 the current gas hedge price, or oil below $58 U.S.
This is a buy with a 6-9 month hold and you should double your money.
IMHO