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

To: E_K_S who wrote (38873)	8/18/2010 5:27:40 PM
From: Paul Senior	Respond to of 78632

Thanks for the GMXR analysis, EKS. I continue to add to my shares as the stock falls.

To: E_K_S who wrote (38873)	8/22/2010 2:03:20 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78632

re E_K_S / GMXR. Intersting angle on GMXR Midstream business. I think there is indeed some hidden value, but the asset should already be on GMXR balance sheet at cost. I think it would probably fetch more than that if sold ,and that the differential would be value that could be unlocked. I still wonder if we overlooked something with GMXR. one thing I noted are the high G&A expenses of 1.44$/MCFE while the much larger peer CHK ( which I do not even consider a low cost operator) stands at 0.34$. Even accounting for the difference in size,that is a huge difference and the real reason for GMXR's lack of profitability. I wonder what the reason for the high G&A expenses is, 1.44$/MCFE is a lot of money if you need to sell for 5$/MCFE. Certainly, based on the proved reserves they have in the ground, GMXR is cheap, with a valuation of <1$/MCFE proved and that not even counts the undeveloped part and the land.