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9 Cheap Stocks to Buy Now for $10 or Less

Not every low-share-price stock is a clunker

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Cheap Stocks to Buy Now: Exco Resources (XCO)

cheap-stocks-to-buy-now-xcoMarket Cap: $1.4 billion
Industry: Energy

Exco Resources (XCO) has admittedly had a rough 12 months or so. The onshore oil and natural gas play is focused mainly on shale operations in east Texas, north Louisiana, Appalachia and the Permian Basin in west Texas. And with dirt-cheap natural gas prices and oversupply issues, it has been a rough going for a host of energy stocks, including XCO.

The good news, however, is that Exco is the right size for these lean times and should be able to bounce back in 2014.

For instance, in fiscal 2012, EXCO cut back by reducing drilling rigs from 24 to just 5, as well as slashing more than 60% of its contractors and one-sixth of its full-time workers. The restructuring hit the company hard, but these efforts are putting it back on track. Revenue has increased year-over-year for four consecutive quarters, and the company is projected to return to profitability this year.

In the meantime? XCO stock yields nearly 4% in dividends — a decent incentive to be patient with Exco stock.

Article printed from InvestorPlace Media,

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