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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: laurin_de who wrote (35058)	12/18/2009 12:01:57 PM
From: FIFO_kid2	Read Replies (1) \| Respond to of 37387

CXPO's stock offering failed because of timing given there were many competing equity deals C CIE KRA over the past few days and the final deal ended up with a much higher overall float than many anticipated. (It now stands at 38 million total) Unfortunately, it was rushed because the company was in violation of debt covenants. Laurin I am not in total agreement with the poor outlook with the gassers. Like the conventional oil producers equity appreciation is all about reserve growth. Gassers that have found reserves or have adjacent acreage have been thriving as IOC and EWD.V are still near their highs and are up 700% or higher over the past 52 weeks. CXPO fits this necessary parameter. I also believe this recent spike in natural gas prices will enable companies to attractively forward sell their production for another year or 2. As for potential at least we have some benchmark to compare to as XOM was willing to pay 41 billion total for 45 TCF of potential reserves. I think CXPO has around 1 TCF in the ground so you can do the math of its enterprise take out potential. The big problem here is the increased float has lowered my per share expectations.