In the independent oil and gas space, I will happily bet against the high-cost operators. I would argue that Magnum Hunter overpays insiders, wastes money on corporate aircraft, and has excessive G&A as a percentage of revenue. This has contributed to Magnum Hunter’s track record of GAAP losses since current management took over in May 2009.
Market cap: $1.42B
% of float short: 18.2%
Cost of borrow: ~0.6%
The put options are somewhat liquid.
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