Sanchez Energy Corp. (fka SNECQ)

[boomer23]

Ghost...stocks always have a way of taking care of themselves in the end. These guys are executing in all areas so you should be fine in the longer term. A few thoughts for you to consider that might make sense or make you feel better.
SN was private for years prior to carving out the oil assets. There was no liquidity. This may be some of the consistent selling pressure as those that have been in for years seek to monetize. SN was carved out of Sanchez Energy Partners so those that were issued SN shares still hold their remaining partnership interest and the upside that comes with that. The inevestment in the Eagle Ford has been essentially a 10-bagger thus far.
Secondly, SN just blew out that preferred convert offering (oversubscribed). With such offerings many hedge their positions by shorting the common. They'll have to cover at some point which will create a short covering rally but it's still a common strategy to hedge in that manner.
Lastly, production take away capacity has been maxed out in certain areas. Good news, bad news. Obviously they exceeded their expectations with the production build but now they are capped and will have to move to expand that capacity as quickly as possible. There is an expense to that they will share with Marathon but it has to be done. This will have a short term impact on increasing production and reserves at the rate they have been.

Look at the huge bump up in the credit facility. This tells you that they are moving in the right direction. Any of us would be hard pressed to find a company with this balance sheet and production with the game just starting.