TheStreetSweeper Cautious on Resolute Energy (REN)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
TheStreetSweeper issues a negative report on Resolute Energy (NYSE: REN):
*2Q report touts average daily oil production improved to 11,865 barrels. What wasn't announced is the average is below the previous two years daily average.
*Junk-rated REN gets downgraded by Standard & Poors in February, adding further pressure to the debt-riddled company.
*Company conducts a June reverse stock split ... always an ominous action.
*Soon after the reverse split, former REN underwriters line up to rate the stock, as if looking for a chance to manage the next offering. Wunderlich boosts its July price target twice in the last two weeks.
*REN is selling assets, enduring dropping cash reserves, mounting liabilities and anticipating up to $70 million in lease expenses this year.
*The stock rose under a recent crude oil rally.
*Oil prices dropped on Wednesday, Aug. 24, the same day REN filed notice that the only CEO the company has ever had is retiring.
*REN shares appear positioned for a ~70% price drop.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla (TSLA) Model 3 Plans Doesn't Require Capital Raise; SolarCity (SCTY) Could be a Cash Contributor - Musk
- General Dynamics (GD) volatility flat on call put ratio of 4 calls to 1 put into Q3
- Chipotle (CMG) volatility decreases as shares trade at 52-week low
Create E-mail Alert Related CategoriesShort Sales, Trader Talk
Related EntitiesCrude Oil, TheStreetSweeper
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!