RAM Energy Resources Inc. (RAM) said Halcon Resources LLC, a company led by former Petrohawk Energy Corp. Chief Executive Floyd C. Wilson, agreed to provide a $550 million capital injection, half of which will give it a majority stake in the oil-and-gas explorer. RAM Energy's shares surged 36% to $1.50 premarket.
Since that news hit the wires yesterday, the stock has already more than doubled ($2.80+ today) and is still trading higher as I write this. Although Rodman and Renshaw downgraded the stock, some think it could go much higher from here. I have been watching this stock for a while (thanks to BravoBevo for bringing it to my attention!) and it was doing OK before this news. I think a better entry point will be coming soon but I would not expect the share price to drop much before it takes off again.
Does anyone else have any additional insights? I have no stake in this stock currently, but thinking about initiating a small position in real life.
Ram On! and Merry Christmas to all!