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

To: 7 Years who wrote (41307)	2/18/2011 12:31:52 PM
From: E_K_S	Read Replies (2) \| Respond to of 78667

Hi 7 Years - Re: RAM Energy Resources, Inc. (RAME) Here is an article posted on the Big Dog's Boom Boom Room titled: Jeffrey Hayden and Chad Mabry: Stay Very Oily Source: George Mack of The Energy Report 02/15/2011 February 17th, 2011 Message 27176956 From the link:"...Chad Mabry: Sure. Just to talk about one of my names that we recently moved over to our top picks in our preview piece is RAM Energy Resources (NASDAQ:RAME). It's a value name, and it's a stock that really hasn't participated in the recent rally. One of the things it's been doing over the past few months is addressing its high leverage situation. The company has divested a number of non-core assets, and these were pieces of the portfolio that were more gas weighted. They were non-operating assets for which the stock really wasn't getting much credit. It was able to use proceeds from those divestitures to pay down some of its debt load and, in so doing, high grade its asset base by increasing its oil weighting. RAME's trading at a 2011 EV/EBITDA of 5x–6x. One of the intriguing potential catalysts in the near term is a shallow oil-exploration play at its Osage Concession. It's a Mississippian play in northern Oklahoma that the company's been pursuing for the past year or so now. It really is just at the first stages of having some initial results, which could really get the stock moving here. TER: Chad, you said it's a value play, and indeed it has trailed its peers over the past 52 weeks. CM: To retrace some of the steps over the past 52 weeks, the stock has seen a fair amount of volatility. The company did announce it was pursuing strategic alternatives, and it got a little ahead of itself for a while as investors priced in a takeover last year. That didn't transpire, and it corrected a bit. ----------------------------------------------------------------- They still seem to think the stock is a value play and as oil increases in price, their future development projects should add even more valuable assets to the company. The link also has some good comments on two other E&P companies: Rosetta Resources Inc.(NasdaqGS: ROSE ) (mentioned by Paul Senior) and Gastar Exploration Ltd New Ordi(AMEX: GST ) another one of my holdings that recently completed a secondary offering (13.4 million shares at $4.00/share). EKS