Law Office of Christopher J. Gray wishes to alert investors to the possibility that recommendations of Halcon Resources Corporation (Halcon) by broker-dealers may be unsuitable, depending on the individual characteristics of investors and whether the broker had a reasonable basis for the recommendation.
Halcon, a Texas based company, is an independent oil and gas company that explores for crude oil, natural gas and natural gas liquids in the US and Canada. According to a recent press release, Halcon was able to reduce its long term debt by $548 million. However, even with that reduction Halcon still has a total debt of around $3 billion dollars as it struggles to stay afloat. In addition to the falling price of oil Halcon has accumulated debt because its oil wells are not producing as much as when they first started production.
Because of the risk associated with commodity investments such as oil and gas, such investments are better suited for sophisticated investors with higher risk tolerances. When a broker recommends that a client purchase or sell a security, the broker must have a reasonable basis for believing that the recommendation is suitable for the investor. In making this assessment, a broker must consider the investors income and net worth, investment objectives, risk tolerance, and other security holdings.
If you believe you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and options. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.