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

To: Mr.Gogo who wrote (41232)	1/28/2011 11:18:50 AM
From: E_K_S	Read Replies (4) \| Respond to of 78753

Hi Mr. Gogo - If you do not have a small position in GMXR this recent sell off may provide a good entry point. Lots of news out today on GMXR. The most important is the issuance of $100 Million in new stock. Company also plans to focus on Oil rather than NG in next years capital budget. They also are paying down debt. Long term probably bullish as they can afford to expand their common shares and make up any dilution w/ growth. Short term, current shareholders do not like any type of share dilution. You could wait until they price their secondary offering and try to buy on any dip below that price. I doubt that any new offering will go below $5.00/share. Company owns a lot of good assets especially in the Hainsville Shale area where there is a lot of take over discussions by XCO investors. Pickens in Confidential Pact With Exco in Takeover Bid (Update1) noir.bloomberg.com January 21, 2011 GMX Resources Issues Haynesville Shale Update shale.typepad.com GMX Resources (GMXR) issued an update on its operations in the Haynesville Shale, including data on production and well costs. GMX Resources brought eight wells onto production during the fourth quarter of 2010. These wells had an average lateral length of 5,356 feet and an average cost of $8.9 million. The company indicated that this was a decline in average cost of $500,000 per well. GMX Resources reported that the Mia Austin #6H Haynesville Shale well produced an average of 7.24 million cubic feet of natural gas per day during the first sixty days. The Bosh Heisman #17H well was recently drilled and completed into the Haynesville Shale with a lateral length of 6,164 feet and a fifteen stage hydraulic fracturing operation. ----------------------------------------------------------------------------- Lots of cross currents. Since GMXR's management has a new focus on drilling Oil wells (and no more NG wells) would they consider packaging some of their producing NG wells in the Hainsville Shale area to a potential buyer of XCO properties? It should provide for an interesting ride w/ this stock as some of their assets may be in play at a time where they need the money to expand their oil drilling program. EKS