EXCO Resources Shares Jumped: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

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 EXCO Resources (NYS: XCO) jumped 12% today after a deal was announced with one of the company's partners.

So what:Cheniere Energy (ASE: LNG) signed a deal with BG Group to export liquid natural gas from the U.S. This is a big deal for EXCO because the company has partnered with BG to explore for shale gas in the U.S.

Now what: The connection is weak at best because there's no indication that BG's own natural gas will have any sort of priority. The best that EXCO can hope for from this deal is that natural gas prices will go up in the U.S. and it can benefit that way.

I'm selling this move and think the excitement will wear off pretty quickly.

Interested in more info on EXCO Resources? Add it to your watchlist byclicking here.

At the time this article was published 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.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners