RE:RE:Next stop Always a pleasure to see your posts Efficient. Well written and never off the mark they are a valuable read for anyone wishing to get a handle on this company.
When this stock came out of its trough last January (.70-.88) and headed higher, there was heavy buying on the way up. I wouldn’t doubt that a considerable clump of shares were picked up by a potential acquirer(s). Buying up sizable quantities of the stock at bargain basement prices certainly mitigates what one must pay for the residual shares needed to get the deal done later on. Of course, it would be a stretch to think that it was just one buyer, given the competitive synergies that abound in the junior energy patch. The generally improving oil and gas market has only added to the momentum of the LXE share price.
When we were stuck in the trough did anyone really consider such a turn in events? Not bloody likely, and that includes me. Any buying I did at that level was done purely for the illusion that I could do something. Placing an order below the bid empowers one. You say I’ll take it, -if you’re stupid enough to sell it to me at that price. But when the market sinks to the bid, and fills then you think, Holy God, I really am going to end up under a bridge.
Circumstances have changed since then. I don’t think it will go back down. Any selling that we do see is likely from retail investors who were underwater and consider themselves lucky just to get their money back. In that case, the operative word would be to buy on dips.
And you may very well be dead on Efficient! Maybe we will have to see the results from 8-10 wells to verify the potential of the acreage. But a number of sections are contiguous with Tourmaline and their land has been highly prospective. But one way or the other, favorable trade winds seem to be blowing behind good ship LXE.