BRNC and Wexford
A good buddy of mine, who is a huge fan of BRNC, noticed something very interesting. An investment firm called Wexford Capital has been selling a massive amount of shares over the last couple of months. Check it out here (aka Bronco Drilling Holdings):
This is clearly putting downward pressure on this stock. Wexford wants out - but why? Our guess is that they invested well before the IPO and now is profit taking, probably got shares by the penny -- now looking to get into other ventures. The massive selling is a bit concerning, but at this close to book value, our guess is that they simply have made their return on investment and our now looking for other opportunities (any thoughts out there)? Once the sell off has finished and the downward pressure subsides, BRNC could really take off - especially with earnings simply in-line or even slightly below analysts expectations. This should be fun to watch. A stock hovering this close to book value with clear growth prospects and oil well above $40 seems like such a no-brainer. Only time will tell.