EXCO Resources 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 EXCO Resources (NYS: XCO) fell 10% in early trading after the Greece bailout was put into question.
So what: Oil dropped dramatically this morning falling to $89.17 early and putting pressure on oil and gas stocks. With EXCO set to release earnings, after-the-bell traders got a little worried that the European fallout could have an effect on future earnings.
Now what: The move today hit many oil and gas explorers, but I would wait until tomorrow to make a decision on whether EXCO is a buy or sell. The earnings report and any guidance from management should have more effect on your decision than a short-term panic in energy markets. Today, sitting on your hands is the right move with this stock.
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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.