Ed...in that scenario there was much more overhang than you would've ever known. Most XBOR shareholders from Pure (80%) have very little basis as they recouped more than 80% of their original investment long ago (over the life of the partnership). They could sell XBOR down to .30 and most still be in the money.
I expect to see plenty of sellers over the next 6-12 months for a variety of reasons but bottom line is that XBOR's acreage alone has the upside to flush them out. Quite frankly, a lower price in the short term only accelerates the process as the weaker hands are forced to sell more shares. Stocks ALWAYS take care of themselves and if production and reserves continues to build at the pace a measely $5mm showed it could then who cares what the price does today. Relatively speaking, the ultimate ratio of longer term holders to shorter term transient holders favor the longer term holder IF the geologists behind this are remotely accurate. I personally don't care if the stock goes down 50% to see them leave as long as the acreage develops like they predict. I can wait.
The combined company brings significant advantages. Nothing much was ever going to happen much less expected to happen while the hose was being cleaned.
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