Energy XXI Ltd fka EXXIQ

[SV Solar Surge]

"Another indicator of bottoming conditions is the occurrence of mergers and acquisitions. Some companies will try to take advantage of the unsustainable low oil prices and will decide to acquire another company, thus taking advantage of its temporarily low valuation. For instance, there has been some chatter of a takeover of BP by Royal Dutch Shell (NYSE:RDS.A), (NYSE:RDS.B). It may also be the most opportune time for the oil majors to acquire some small oil producers, such as Linn Energy (NASDAQ:LINE), Energy XXI (NASDAQ:EXXI) and Abraxas Petroleum (NASDAQ:AXAS), which have lost 67%, 85% and 50%, respectively from their highs a few months ago. These companies cannot withstand an extended period of a low oil price without issuing new (dilutive) shares because they have significant debt to pay off but an oil major can acquire them at a cheap price now and wait till the oil price rebounds to make the maximum profit out of them."

Hope to see some heavy action in EXXI with the oil rebound, current pps and potential acquisitions with in the oil sector!

http://seekingalpha.com/article/2780135-how-to-identify-the-bottom-of-the-oil-market



SVSurge