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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (42143)	4/4/2011 3:43:57 PM
From: E_K_S	Read Replies (1) of 78748

Re: Double Eagle Petroleum Co. (DBLE)- bought Re: Dominion Resources, Inc. (D) - closed out position (Bought D 8/2009 @ 33.50 closed out position @ $44.85) This is a good discovery Paul. The have well established NG properties and interest in the Rockies Express ("REX")NG pipeline that will serve the West coast "growth" market. This emerging midstream operation IMO is a hidden gem and will be a valuable asset as NG demands grows in CA. Double Eagle also owns over 90,000 gross and 70,000 net acres in Niobrara Oil Shale region. One of the areas I really like because of their high grade oil. According to their Web site, they will be drilling two new wells here in 2011. The company only has 11.18 million shares outstanding but are somewhat leveraged with $32 million in revolving bank debt (almost $3.00/share). They are cash flow positive but may have to raise capital in the future to finance their planned well expansion. This may dilute current shares. In their most recent presentation (pg-15-), they show a Net Asset Value per share in the amount of $18.75/share. It's only a matter of time before the market recognizes this. -------------------------------------------------------------------- Sold my remaining shares of Dominion Resources, Inc. (D) and put 1/2 the proceeds into DBLE. I plan to write the October $10 covered calls on a portion of these shares to generate income. Will buy more shares below $9.00/share. EKS

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