Crosstex Energy Shares Plunged: What You Need to Know
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 natural gas marketer Crosstex Energy (NAS: XTXI) fell as far as 17% before retracing to a smaller 8% drop, all on fairly heavy volume.
So what: The market gave a positive first reaction to last night's second-quarter report, sending share prices up by 5% in after-market action. But the thrill of terrific sales and a 44% year-over-year jump in distributable cash flows faded in the daylight hours, drowned by a cacophony of market worries and falling oil-and-gas prices.
Now what: This too shall pass, I say. Crosstex, its sister company Crosstex Energy (NAS: XTEX) , and rivals such as Western Gas Partners (NYS: WES) sport some of the strongest dividend payouts on the market, backed by those strong and still-rising cash flows. It'll take a market disaster of truly epic proportions before I'd tell you to stay away from these stocks, and I say that as a longtime energy skeptic.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. 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 is investors writing for investors.
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