Below is a note written by CEO Keith McCullough on why we're removing Range Resources (RRC) from the long side of Investing Ideas today:
Since I’m obviously in top-down risk management mode of inflation as a market exposure (we see headline US inflation peaking and rolling over in the coming months), this is largely a macro call. Commodities, as an asset class, are broadly breaking down to 3 month lows for good reasons, fully loaded with our #ChinaSlowing view.
So, now that the “good news” of a better than bad RRC quarter is out of the way, I have no bullish catalysts until next quarter. In the meantime, I’d rather come back to this lower and establish a better costs basis for you then. There’s no change to Al Richards fundamental view of the asset’s gross undervaluation.
***No change to Energy analyst Alec Richards' fundamental long thesis on Range Resources. Click here to read our analyst's original report on the company.