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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (40081)	11/16/2010 4:49:40 PM
From: E_K_S	Read Replies (1) of 78468

RE: Magellan Petroleum Corporation (NasdaqCM: MPET ) Some discussion on Yahoo that a large investor was selling shares. I guess they gave up on the investment especially w/ management's new focus on developing their strategic reserves. Not too sure if I agree with it either and do not know the track record of the development team. I have a small starter position and am not convinced to build it up until I know that resources are going to be deployed in their U.S. properties. The company is a bit cash strapped and will have to explore JV partners and/or raising more money to develop these reserves. I guess this is the nature of these E&P companies. ==================================================================== GMX Resources Inc. (GMXR) off 7% and back down to it's 50-day MA ($4.53/share). It finally sold off on heavy volume (1.5 times daily average) so it may test some of the recent lower lows ($4.30/share level). I will be adding some more shares as I think this one is further along than MPET in building cash flows out of their proven reserves. I can also hedge GMXR by selling covered calls. MPET does not trade options. I plan to also add shares of Williams Companies, Inc. (WMB) and MDU Resources Group, Inc. Commo(NYSE: MDU ) on any further correction. I think WMB is significantly undervalued but it has more exposure to NG than you like. If the dividend yields go above 3% then I will make some buys in size. My Empire District Electric Co. (EDE) which now yields 5.5% down from 7.5% s/b called away from me in December allowing me to book a 25% gain YTD. I plan to deploy these funds into my basket of E&P companies w/ 70% going into MDU & WMB. ==================================================================== There is definitely interest in these domestic shale fields for both Oil & NG. As long as I see big money sniffing around to acquire acreage in both developed & undeveloped well locations, I will continue to commit money to the sector. I expect to see a lot more JV's and project acquisitions from the big integrators. Both MPET and GMXR could be the beneficiaries of these new investments. EKS

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