Seeing the Forest for the Trees
Forest Oil (FST), an oil-and-gas exploration-and-production company primarily positioned in Texas, disappointed the market in July when it declared that it would cut its capital expenditures. The move would slow the development of its shale acreage, though it was meant to improve its finances. At this point, the stock is down 37% year to date -- partly due to the announcement and partly due to some large earnings misses the company announced earlier this year.
However, billionaire Steve Cohen and his team at SAC Capital Advisors have concluded that the stock has been beaten down too much by the Street. The large hedge fund recently disclosed ownership of 6.4 million shares, which comes out to 5.4% of the total shares outstanding. The stock is currently priced at $9 per share, having rebounded from its lows last summer of around $6. But it appears SAC has only recently purchased enough shares to put them the firm over the 5% mark....523 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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