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 oil and gas producer Plains Exploration & Production
So what: The company announced it is buying $5.5 billion worth of assets in the Gulf of Mexico from BP
Now what: Investors aren't excited about the increased leverage on the balance sheet and that's why the stock is down today. Long-term debt was already at $3.9 billion at the end of June; this will only increase the debt load. It's a risky bet and that would be enough to keep me out of the stock, even after the 10% discount.
Interested in more info on Plains Exploration & Production? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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