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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: MIRU who wrote (155904)	8/22/2011 9:01:07 PM
From: CommanderCricket	Respond to of 206084

ns, Who knows? The selling at this point doesn't have much to do with fundamentals. All of the small cap E&P's are showing the same pattern. IMO it's a good time to start accumulating positions in the beaten up small cap favorites like MHR, SD, HDY, FXEN and even ATPG. Michael

To: MIRU who wrote (155904)	8/23/2011 8:21:42 AM
From: donc	Respond to of 206084

..there is something going on besides margin selling..FXEN is much weaker than other oils.. i wonder too if the 'insiders' have knowledge of yet another dry hole.. donc

To: MIRU who wrote (155904)	8/23/2011 10:08:39 AM
From: architect*	Respond to of 206084

FXEN - IMO the sell-of is due to FXEN's Q2 2011 report. $9 MM gross revenue ($8.5 MM) non-cash charge ($12 MM) receivables ($8 MM) change in working capital ($6 MM) cash available for operations ($11 MM) Capital expenditures $239 MM market cap, assume $32 MM in annual gross revenue 2011, and FXEN is trading at a 7.5 multiple to gross revenue which the market may be saying is expensive, even for a growth stock. Even, a 7.5 multiple to funds flow from operations (OpEx cash flow) would be rich, IMO. As you can see from reviewing the Q2 the liabilities are big percentages (negative) of the gross revenue. I don't own FXEN, or follow its operations, but you have to ask the questions 1) at what operational cost / mmcf, and what volume of production do FXEN operations become profitable? 2) what caused Q2 to be in mostly red, when Q1 was mostly green. 3) what production flows and operational costs does FXEN project for Q3 2011. Data from the financial summary of my brokerage account. No position in FXEN. Transatlantic - TAT on the AMEX is another natural gas play in Turkey, with similar operations to FXEN. Compare FXEN's MC/revenue and MC/OpEx cash flow to TAT. TAT has guided a 40% increase in production flows from Q2 exit to 2011 E. TAT has debt and $90 MM is current and due near term. TAT's Q2 funds flow from operations doesn't provide the operating capital to repay the $90 MM due. Other than that, TAT's 2012 balance sheet on the higher production guidance 7.5k boe/day, (4k boe/day current) may start to look good. TAT has gotten wacked hard by the ugly stick, as they haven't achieved their production guidance and reduced their 2011E guidance to 7.5k boepd down from 10K boepd. No position in TAT, but if TAT becomes self-funding ie. 2011 funds flow from operations - fully funds 2012 operations and 2012 capital expense, I'd be tempted.