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

To: Spekulatius who wrote (38916)	8/22/2010 5:16:44 PM
From: E_K_S	Respond to of 78633

Hi Spekulatius Re: GMXR It's possible that one or more of their hedges went sour and this was a one time event that impacted their MCFE expense calculation. I do know that their midstream business has value as they already sold a 40% interest to KMR. There was some mention that they also have extra capacity and there was some discussion to solicit third party "gathering" contracts which would be additional revenue to ad to the current stream. On the negative side, the bank lowered their line of credit a bit to account for the equity interest in their Midstream subsidiary they sold ($36 million) to KMR. It's a moving target on revenues and expenses. The market seems to think the stock is still over valued but I suspect the tide will turn especially as NG prices rise. My strategy is to accumulate shares at prices below $4.50/share. I get their gathering business worth $1.91/share and the rest of the company for $2.50/share. I am buying the assets "in-the-ground" for at least a 50% discount to market even if I account for their carrying cost of the borrowed money. This seems like a pretty good deal as long as Mr. Market eventually sees the same long term value. EKS