Looking For A Highly Speculative Turn Around Stock? Try EXCO resources

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By Jacob Maslow

EXCO Resources Inc logoEXCO resources (NYSE:XCO)  is a natural gas explorer. It has positions in Haynesville Shale Field and it is also shifting its focus on oil. It did this by taking up a position in the Eagle Ford Shale. This company is going through a turn around and is working with a strategic partner to offer greater value in the current depressed market. It seemed that this company borrowed billions of dollars precisely at the top of the market right before the collapse of global crude prices.

It is currently working on total debt reduction. It has received new money from its partner and has also been selling off assets and offering rights to generate cash to be able to wipe out as much of its debts as possible. I like this stock because if the energy markets normalize, this is one stock that should benefit. Another reason why I like this stock is that it seems to be aggressive in taking care of its debt issues.

Remember, the two main reasons why this stock is currently depressed is due to its debt load and its over all health of the global energy sector. It appears that this company has a clear plan in digging out of its debt or at least normalizing its debt. If the markets recover, then the other end of the equation kicks in and it would not be surprising for this stock to appreciate quite a bit.

Keep in mind that with any speculative buy, the upside potential is great but so is the downside potential. The higher the risk, the higher the potential reward or loss.

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