Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Comstock Resources (NYSE: CRK ) jumped as much as 18% today after announcing an asset sale.
So what: Comstock is selling 53,306 net acres in the West Texas Permian Basin to Rosetta Resources (NASDAQ: ROSE ) for $768 million. The money will be used to pay off debt and increase its drilling program in the Eagle Ford shale.
Now what: Capital expenditures are now expected to be $410 million for drilling activities, of which $312 million will be spent in Eagle Ford. I think the move to reduce debt and improve liquidity will be a positive for shareholders going forward. Still, I'd like to see consistent profits before jumping in, especially at this elevated price.
Interested in more info on Comstock Resources? Add it to your watchlist by clicking here.