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

To: E_K_S who wrote (40473)	12/8/2010 1:37:25 PM
From: Bordeauxman	Read Replies (1) \| Respond to of 78595

Oh. Well that explains the on going price action. I thought I'd read that the 12 M share offering was a private placement. Ignore previous messages. (But thanks for reminding me why I bought GST to begin with.) BMan

To: E_K_S who wrote (40473)	12/8/2010 2:32:13 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78595

GST/AZZEF I added to my few GST shares today at a bit above the offering price. I'm not enamored of gas plays, even though GST says they are, or will try be, a low cost producer. So a very small holding here for me. It would be nice if some of their land holdings would enable them to frac for oil, although I don't know whether that's possible. Meanwhile, AZZEF is down from my purchase price with no adverse news that I see. I'll add to my position. At least for this one the numbers easily pencil out to make it an attractive buy for me. Easily doesn't mean correctly though of course: I hope I've got all the right numbers and have used them correctly in making my conclusion...and then I have to hope that the stock doesn't turn out to be a value trap. finance.yahoo.com

To: E_K_S who wrote (40473)	12/9/2010 11:36:57 AM
From: E_K_S	Respond to of 78595

Re: Gastar Exploration, Ltd. (GST) - Analyst Upgrades Canaccord Genuity maintains a 'Buy' on Gastar Exploration Limited (GST); Completes Offering to Fund Accretive Acquisition streetinsider.com December 9, 2010 10:42 AM EST Canaccord Genuity maintains a 'Buy' on Gastar Exploration Limited (NYSE: GST), PT $4.25. Canaccord analyst says, "We are maintaining our rating and lowering our target price based on Gastar’s recent equity offering and associated Marcellus leasehold acquisition. We continue to like the company’s torque to the Marcellus trend and believe Gastar is an attractively priced Marcellus producer given its relative growth potential and liquidity. With the funding overhang now removed, we believe the company is well positioned to outperform in H1/11 based on its initial Marcellus and Eagle Ford test wells. Gastar expects to have an interest in at least eight Marcellus wells by mid-2011." ================================================================= MKM Partners Upgrades Gastar Exploration Limited (GST) to Buy streetinsider.com December 8, 2010 2:21 PM EST MKM Partners upgraded Gastar Exploration Limited (NYSE: GST) to Buy. =============================================================== Hard to say what the intrinsic value of GST is but a secondary sale at $4.00/share was way too low IMO. Hopefully these will be long term holders. Based on the analysts estimates prior to the announcement of the secondary and then adjusted for the stock dilution, the fair value price target s/b $4.40/share - $5.00/share. After the secondary, several other analysts have come out and rated GST a BUY (at current levels) and have raised their longer term price targets too. MKM Partners even has a new price target of $6.00/share. I suspect this is an 18 month-24 month hold . Remember, Gastar just bought north of 50,000 acres at $1,000 an acre or less in the Marcellus shale region. Earlier in the year, they sold similar acreage for $4,000/acre to their JV partner after they obtained the necessary drilling permits and completed the development to begin exploratory wells. I will look at selling some covered calls early next year as the stock trades above $5.00/share. Probably some of the September 2011 calls when they are listed at the end of this month. A lot depends on new company announcements in the next six months. For now, this one is a good long term hold for me. EKS