Wednesday, November 23, 2011

ManicTrader Pick 11/23/11 $GMXR - GMX Resources Inc.

  GMX Resources - GMXR

About $GMXR

GMX Resources Inc. operates as an independent oil and natural gas exploration and production company primarily in the United States. It has interests in two oil shale resources, including the Williston Basin that targets the Bakken/Sanish-Three Forks in North Dakota/Montana; and the DJ Basin, which targets the Niobrara Formation in Wyoming. The company also holds interests in natural gas resources comprising the Haynesville/Bossier Formation and the Cotton Valley Sand Formation in the East Texas Basin. As of December 31, 2010, it had proved reserves of 319.3 billion cubic feet of natural gas equivalent; and 264 net producing wells in east Texas. The company was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

Small Cap pick $GMXR

This is a Manic Picks from last year that netted 29.6% Alerted at 4.05
With a Crazy bear market, downgrade and earnings miss this oil driller has hit 10 year lows. But company is in the Bakken Oil Field space.


$GMXR Pulled back to a 10 year low at 1.15- 1.14 being support. My stop is at 1.13 in case she retests support. Love the long term potential here.

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GMX Resources (NYSE:GMXR) is at an early stage of developing the Williston Basin, and recently started drilling the company's third operated well into the Bakken and Three Forks formations. The company just completed its first well and reported a 24-hour initial production rate of 450 BOE.
Although the company may still earn a decent return on this well, the market was disappointed in this result and sold the stock down by more than 20%.

5 Stocks Poised To Increase Profits In 2012

Another Oklahoma independent energy company, GMX Resources, Inc. (GMXR) is also poised to realize high profits into next year. It has proved reserves of more than 300 billion cubic feet of natural gas in the Bakken Shale, Haynesville Shale and Cotton Valley Sand Formation in East Texas. It’s no secret that the United States has plenty of natural gas. Discovering the practical application for this resource (besides heating our homes and stoves) remains the million - or billion! - dollar question. If the price of natural gas starts moving north, GMXR will reap tremendous benefits. It currently trades at $1.89, down from its 2008 high of $70 per share. Instead of a business like Cabot Oil and Gas Corp (COG) that trades at 60 times earnings, I’d rather bet on an emerging business like GMXR that has tremendous upside potential.
I like the fact that GMXR is a family business. The Chairman, Ken L. Kenworthy Jr. is the son of the founder and director, Ken L. Kenworthy Sr. The people at the helm of this company are intimately aware of its operations in ways of which no one else is privy. This business is headed toward a year of great earnings, but it is still unclear whether or not GMXR can create value for its shareholders. 

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