Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 22, 2014

Article Excerpt

BELLATRIX EXPLORATION LTD., $8.53, symbol BXE on Toronto, produces natural gas (65% of output) and oil (35%) in Alberta, B.C. and Saskatchewan. Bellatrix jumped 14% this week after U.S. activist investor Orange Capital LLC revealed that it has been investing in the company since July 2. It now holds about 10.2 million shares Bellatrix shares, or a 5.3% interest. Orange Capital wants the company to discuss changing the size and composition of its 10-person board of directors. It also wants Bellatrix to hire a financial advisor to explore strategic alternatives, including selling its midstream assets (natural gas processing plants and pipeline gathering systems) or an outright sale of the entire company. Bellatrix has been rapidly expanding and developing its projects over the past year, including some high-profile joint ventures with partners like Daewoo International Corporation and Devonian Natural Resources Private Equity Fund. However, Alberta’s rising gas production has overwhelmed the pipelines that pump it to various processing facilities. Plant operators are upgrading to handle…