Watch List: GMXR
Posted: Fri Dec 03, 2010 3:30 pm
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.
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.