Steelhead Partners Buys 12% of Endeavour International

A 13D filed with the SEC has disclosed that Steelhead Partners, a hedge fund managed by Michael Johnston (see his latest stock picks), owns 5.3 million shares of oil and gas exploration and production company Endeavour International Corporation (NYSE:END). The fund had initiated a position in Endeavour during the third quarter in the year and owned a little over 4 million shares at the end of September; its most recent purchases have given it 12% of the shares outstanding. Endeavour’s market cap of $240 million (an average of over 700,000 shares are traded daily) means that it is priced at 7 times consensus earnings for 2013. The company is unprofitable on a trailing basis, but revenue is up strongly and it’s worth seeing if its fields are just coming on line- that would be a cheap price for a fast growing producer.