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

To: rllee who wrote (42214)	4/8/2011 2:52:36 PM
From: E_K_S	Respond to of 78526

Hi rllee - Re: GMXR preferred I got my GMXR preferred for $24.30/share but I left my order out there for a few days. I used an All or None condition and it was picked up at the close yesterday. Remember the private placement sold at a discount at $47.50/share. So these investors are making a dividend and a quick $1.80/share. I plan to pick up more in June before the 6/17 ex-dividend date. I do not expect it to be much lower. ---------------------------------------------------------------------- Re: US Energy Corp. (USEG) I noticed you also were looking at US Energy Corp. (USEG) on Dale's 50% thread. Paul Senior has been accumulating this one too. I have been studying it this AM and started a tracking position. This one holds a lot of potential value. After a quick review of their 10K, I noticed they increased their BV by almost $1.50/share from their previous year's well development program. This year they plan a well per month (mostly all oil) which if successful should do the same or better to BV. According to Yahoo BV is 4.83/share which I believe is understated based on some of the new events since Yahoo updated their statistics. In a letter released by the company yesterday, BNP Paribas increased the company's credit facility by $22.5 M reflecting their increased view of the company . ( files.shareholder.com ). The company also reports on several new wells completed or in process. Very positive. Furthermore, the company has stated they plan to list their Remington Village apartments for sale a 216-unit multi-family apartment complex in Gillette, Wyoming. They recently paid off their $16.8 million construction loan. The sale could generate $1.00/share cash which can be used to finance their well development program. Finally, like you pointed out, they have the Mount Emmons Project a proposed mining operation located in Gunnison County west of Crested Butte, Colorado. This project will develop the largest and purest molybdenum deposits in the world. According to WikiPedia, Molybdenum can withstand extreme temperatures without significantly expanding or softening makes it useful in applications that involve intense heat, including the manufacture of aircraft parts, electrical contacts, industrial motors and filaments. All is not positive. I did notice that w/i the last year they had at least one dry hole that cost them almost $2M. So drilling with 100% positive results can not be expected. That said, I expect the company to report positive growing earnings w/ the completion of their 2011 drilling program. Stock could trade back down to the low $5.00/share where I will be a buyer. Anything above $7.50/share, I will hedge by selling some covered calls. EKS