yea, like I said, totally agree with your assessment on XTO.. been watching it for a while myself waiting patiently. your comment on the ultimate entry price is the real question here. at what point do fundamentals matter again and at what point do hedge funds stop liquidating/front running each other? I do hedge fund tracking over on my site and let me tell you, with all the funds in this name, its going to be a looong unwind unfortunately. I hate to be mr. “market timer” here, but until the trend reverses, it could be ugly.

I admire your fortitude to pick it up at these levels and be able to stomach it haha, I don’t think I could handle it! I’m not really a value investor though either so different investment styles conflict here. Although, I will be the first to admit that XTO is reaching borderline ridiculous valuation based on their fundamentals and future prospects.

With the yeild curve so steep, banks are writing loans at huge profits as they borrow short and lend long. As new loans reap profits they make up for past poor decisions. If you look at the S&L crisis, many banks were insolvent, but the regulators looked the other way as a steep yield curve allowed banks to grow profits and reliquidate themselves. Now the regulators do not provide the same room for error and are pushing weak companies from the market.

What are the alternatives to “bankruptcy, nationalization and asset seizures”?

Vidonediv – I do own XTO and will inquire with Blain about putting better disclosures on the website. This is the first post I have recommened a specific name and I apologize for any confusion this may have caused.