Dallas, Texas 06/30/2015 (Financialstrend) – EXCO Resources Inc (NYSE:XCO) has been struggling through the last week of June, at the stock markets. Each day has been a struggle with marginal dips and gains until June 25, when the prices slipped dismally low. By early sessions of June 29, marginal recovery was once again negated nearly matching the prices of Friday.
However, its present share prices are regarded as perfect for buying suggest analysts. The analyst firms predict that the innate capacity of EXCO cannot be negated as it has the ‘willingness’ to strategize and look for multi-year turnaround opportunities.
EXCO Resources Inc (NYSE:XCO) is current termed to hold ‘bad’ fundamentals on many counts, by experts. However, they predict that by the same measure, it holds an upside, which when it manifests would result in incomparable returns for the patient investor.
A new investor and a new restructured management at XCO is likely to deliver on the growth potential, considering the assets of XCO have always been there, latent and waiting for the right leverage. The new investor, named Bluescape Resources Company, is also the advisor to XCO with roughly $50 million already invested in XCO. Bluescape Resources has been very explicit in its commitment to explore aggressively new opportunities to mark the turnaround of the failing company that EXCO Resources Inc (NYSE:XCO) has become.
The several options before the new team include- dilution of common shares to raise cash for delivering, or to added to the current leases or to focus on a merger and acquisition strategy as well.
Experts opine that EXCO Resources Inc (NYSE:XCO) could also explore the second line of loans by entering into newer set of Joint Ventures, retracing, besides the now established practice at XCO, divesting assets. The current phase of turmoil at the stock market is expected to change slowly and steadily as Bluescape Resources and team chart strategies that are beneficial for not only XCO, but investors as well.