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

To: E_K_S who wrote (50202)	11/30/2012 10:45:54 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78748

RIC: Ditto.

To: E_K_S who wrote (50202)	2/21/2013 4:39:34 PM
From: E_K_S	Read Replies (1) \| Respond to of 78748

Richmont Mines Inc. (AMEX: RIC) - Doubled my previous small position in this Jr. Gold miner @ $2.59/share. EXCO Resources Inc. (NYSE: XCO) - Upped my LT position by 25% @ $6.10/share I find both companies have value (looking at BV) as I build up my earlier positions by adding cheaper shares. RIC shows a BV of $3.35/share but may be lower as a marginal mine was recently closed. This company still owns profitable mines even w/ the lower gold prices. My "value" position is still small and I see my current buy a good hedge against inflation for the portfolio. XCO is my NG play as I build my long term position now at an average cost of around $6.36/share well below that of Wilbur Ross who owns a over 7% of the company w/ his last buy at $6.85/share. T. Boone Pickens is also a large holder mainly for their NG assets. To raise CAPX capital for 2013-2014, the company sold a portion of their General Partnership in their NG gathering business (I believe 25% of their 50% interest). The company has the necessary capital and FCF to finance their drilling requirements (which has been slightly reduced) for at least 24 months. Seeking Alpha makes a compelling argument (at least for me) that this is a good long term value buy if one assumes some reversion to the historical 10 year mean price for natural gas. EXCO Resources, Inc., A Long-Term Play On Natural Gas So, for me w/ the 2.5% dividend (which may or may not continue), owning these assets is a better bet than buying an ETF like UNG. Wilbur Ross has a vested interest to maintain shareholder value and may eventually acquire the company. WL Ross & Co. currently has the option to purchase more than 20% of the company as of Feb. 3rd 2013 . XCO still owns a 25% interest in a natural gas gathering business w/ a value of about $1.25/share. If the company continues to sell assets, the potential value I see gets lower and that would make me close out the position. EKS