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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (38780)	8/11/2010 1:59:26 PM
From: E_K_S	Read Replies (3) \| Respond to of 78627

Hi Paul - Re: GMXR and other E&P companies w/ proven reserves (ie Hard Assets) Here is my thinking, The 10 year bond market rate is pointing to deflation and a general concern of a contracting economy. My strategy is to acquire "real" assets that have an instinct long term value and use my high priced dollars to buy them. That's why, I am not too concerned to speculate with a few of the E&P companies as long as they do not have too much debt and have sufficient current cash flow to pay their bills. Proven reserves "in the ground" are good too. Proven reserves are good if they can be bought at a discount. The land assets are good as long as they own it out right and have not liened it to the banks to run their current operations. Picked up a speculative starter position of GMXR based on this thinking. Their balance sheet shows sufficient cash to maintain their operations. LT debt is about $5.00/share but not too high based on their proven reserves. Stock selling at 0.60 BV. As of December 31, 2009, it had proved reserves of 355.3 billion cubic feet of natural gas equivalent; and 252 net producing wells in east Texas. EKS

To: Paul Senior who wrote (38780)	8/20/2010 11:58:19 AM
From: Madharry	Read Replies (2) \| Respond to of 78627

Ive noticed that of all the segments ive speculated in even more so than the miners and the biotechs, the O&G exploration companies ceos tend to make ridiculous statements like this, usually as their share prices are declining, and they are generally not supported by any insider buying usually the opposite is the case. Having said i did buy some GMXR yesterday to go along with all the other o&G positions im losing money on. also bought some mhr go to go along with it.I guess we can all lose money together. I also repurchased some als.to i had sold down 50% of my position and picked back up about 1/3 of that.