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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (40664)	12/17/2010 10:01:20 AM
From: E_K_S	of 78676

Hi Paul - Re: EXCO Resources Inc. (XCO) Didn't know about the prior history of the CEO but Wilbur Ross's recent buy supports my view that this one is a hold up to a fair value price of $29.00/share. I remember reading somewhere that an argument could be made for a $29.00/share buy out price which would be at the high end IMO. That's 40% higher than the $20.50/share buy out offer. I also like GMX Resources Inc. (GMXR) below $5.00/share for the various reasons I posted earlier. The tie in with XCO is that GMXR owns several parcels contiguous to XCO parcel(s) and has one or more JV's with them ranging from drilling ventures, shared gathering facilities and other well development projects. If a new buyer bids on XCO (or the private buy out occurs), the new XCO owner(s) may also acquire some or all of GMXR as this company's properties are also undervalued when compared to XCO's buyout offer. If the new buyer is a very large integrated Oil company, they may just want both companies. EKS

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