Major oil company Marathon (MRO) may be in the red lately, but the underlying numbers may tell a far more positive story.
What happens when the stock of Marathon Oil (MRO) goes down when cash flow is climbing? It is probably going to be a lot of fun for investors to find out. Takeovers have happened in far worse situations than this one. While Mr. Market has been focused on weak commodity pricing, this management has been cutting costs and optimizing operations with some very appetizing results.
Takeovers mean that prices rocket upwards. If the underlying fundamentals indicate the that the company is increasing its cash flow, prospective buyers will seriously consider adding Marathon’s assets to their own. According to Seeking Alpha, “This management bought leases in some favorable operating areas earlier than many competitors. So the lease costs overall are not that unreasonable. Now the focus is on exploration, production, and development. So far, it has been one big celebration for shareholders.”
These tangible assets make Marathon a truly tasty target for investors. If you are looking for what may be the next big mover on the market, learn more at seekingalpha.com.
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