Seems like a dead horse, but even an old horse nag is worth something. I don't know anything about this company except that a good friend brought it to my attention. With little D&D it does appear undervalued, but this is one falling knife. [more]
I say it’s robbing Peter to pay Paul. But, if they plan on go forward with it (which they probably will) you better wait until you need it. The market decent (my prediction) isn’t over because threat of inflation, recession and global instability is now the enemy. [more]
What a screwed up market, but we all knew it was coming. [more]
5/29/2009 11:56:54 AM : Start Price: $3.07 REXX Score: +260.17
Micro-Caps. High risk..high reward & cheap. I'll take a chance with all four. REXX-NOG-KOG-DBLE. After all wasn't XTO & SWN...the future swans of yesteryear?
Rex Energy has 65,000 net acres in the Marcellus Shale in Pennsylvania and will commit 70% of its $49 million capital budget to this area in 2009. Rex Energy recently had its borrowing base of $80 million reaffirmed by its lenders. This means that the BANKS investigated the company's reserves in the context of a future price of oil and gas and decided to maintain the previous credit line. Rex has to pay a higher interest rate, but it presently has only $5 million borrowed (which is very modest). But, lets hope the shale hasn't played out.--Don't think so.
Northern Oil & Gas is headquartered in Wayzata, Minnesota, a town that is not exactly known for being the epicenter of the energy industry. However, Northern Oil & Gas performs just fine for a company with acreage next door in North Dakota. The company has 70,000 net acres and, like so many other operators, targets the Bakken Shale, an oil bearing shale that is becoming very popular in the industry. The company just reported a loss in the quarter due to lower production and realized prices for crude oil. Northern Oil & Gas just SECURED a $25 million credit line and believes it is fully funded to develop its acreage in the Bakken Shale.
Kodiak Oil & Gas is active in the Williston Basin, which targets the Bakken Shale, and in the Green River basin in Wyoming, where the company is developing the Baxter Shale. The company is jointly developing its acreage with Devon Energy a larger exploration and production company with extensive North American assets. (Joint development is a common strategy for smaller companies) in the sector that may lack the financial and other resources to develop properties on their own. Kodiak drilled four wells with Devon Energy in 2008, but is delaying completion until prices recover. Kodiak just issued equity in a secondary offering and raised $7.15 million with which to develop its properties. The company reported a loss in the first quarter of 2009, ****but had no debt.**** .
DBLE: Gott ya :) -do your own research. I'm a buyer.
The micro cap stocks of today may one day become the large caps of tomorrow--the key-- "obviously" is picking the right ones. Start your research on micro caps & very tiny small caps that aren't overly leveraged, like REXX-NOG-KOG-DBLE with properties in well-known resource basins that are being developed by their larger cap peers.
Who knows!!! you might snag a grand slam with "all" four stepping on home plate to hand you the "money". [more]