Halcón Resources: High Potential in Low-Priced Oil
For the quarter ended March 31, 2017, institutions purchased 60 million more shares than they sold, at prices significantly higher than $3.79.
Negative factors are the price has been falling, and it has a large debt of $941 million. However, large debt is common for oil drilling companies.
Overall, Halcón Resources could be an interesting speculation, as the company has completely restructured. The stock has fallen 60% from its price after the reverse stock split.
Part of the reason for the price plunge is crude oil prices have fallen the past four months, and we think the stock price will continue to follow the commodity price.
When the price of crude oil goes up, so should Halcón. If the company continues to grow its revenues and earnings, the stock has the potential to do very well over the next couple of years.