Watch List: GMXR

[dan_s]

GMXR is trading up over 10% today on high volume.
GMX Resources is one of the 20 companies on our Watch List. It is trading below book value and at a very low multiple of my estimated cash flow per share. It is close to a pure gasser. I need to look a lot closer before I can recommend it.
Dan

GMXR is a 'Pure Play', E&P Company with operations in East Texas focused on Haynesville/Bossier (H/B) Horizontal Shale and Cotton Valley Sand (CVS) development. The Company's 2010 production through September 30, 2010 is comprised of approximately 9% NGLs, 3% oil and 88% natural gas. The Company believes multiple resource layers across the Company's East Texas property base provide a robust inventory for high probability, repeatable, organic growth and contain 264 net H/B Hz undrilled locations and 1,092 net CVS un-drilled locations. A substantial portion of the Company's leased acreage is contiguous, and the Company utilizes existing infrastructure throughout this property base.