Editor's Note: Noteworthy addition this morning. We helped Investing Ideas subscribers weather the recent market meltdown by going to no longs prior to the selloff. This makes adding Range Resources back to the long side of Investing Ideas all the more notable.
Below is a note from CEO Keith McCullough on why we're adding Range Resources (RRC) to the long side of Investing Ideas:
Literally the only Commodity in our Quantitative Signaling Product (Risk Ranges) that's been Bullish @Hedgeye TREND for the past few months is Natural Gas (UNG).
So that's another place to be looking for longs when they're on sale (Gas Stocks).
Al Richards and Jesse Root's favorite Gas Stock remains Range Resources (RRC).
Consensus hates it. And I love that.
Here's an excerpt from Al's recent Institutional Research note on Range:
"There isn’t a whole lot of new information in RRC’s 3rd quarter print. But with short interest still hovering at ~15% of the float, boring prints are good prints for RRC. We continue to believe that Range offers one of the best risk/rewards in all of E&P, given the relative valuation for an asset base that has produced best in class recycle ratios and full-cycle margins for years. The balance sheet is in much better shape with leverage on 3Q18 EBITDA annualized at 3.0x; 2.8x pro forma the $300MM asset sale."
Buy'em on red,