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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (38875)	8/27/2010 10:06:36 AM
From: Spekulatius	Read Replies (2) of 78748

re CNX (31.2$) - I followed you into CNX for a starter. I sold my small position in GMXR (4.32$) at a loss to do so and added some funds to make it worthwhile. I do like CNX for their exportable coal and their very well managed gas unit (used to be CXG). This gas unit is a hidden asset so to speak - they were adding reserves at a 10-15% clip annual. They were naturally active in the Marcellus shale but exploiting CBM mostly, now they have multiple objective. I think they can grow reserves nicely - currently those stand at 3TCFE (at least worth 4.5B$) but I think it's more because they have low finding costs and can grow reserves quickly over time. GMXR is cheaper based on their 1$/MCFE reserve valuation but their a destroying value (~ 1.5$high cost overhead apparently) If I add the excess cost (let's say 1$/MCFE) to GMNXR cost base, GMXR adjusted value is 2$/MCFE, which is not a great valuation. I have more ideas than funds to invest right now unfortunately :-(.

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