Liquid Gold for the Price of Mud
At the time of this posting, AXAS is trading at a 17% discount to "PROVEN" reserves, and at one point was down to a discount of 22% of "PROVEN" reserves.
The net assest value of their shares, using only "PROVEN" reserves, is $2.46 per share.
If you add in "PROBABLE" reserves, the net asset value per share is over $13.00.
They have hedges on their production through 2013 at an average of $75.69 for oil, and $6.69 for gas.
They have 77% of their production hedged for 2011, 80% for 2012, and 67% for 2013.
They expect to end 2011 with a daily production of between 4,700 and 4,900 per day.
They have 10% insider ownership, and 40% institutional.
There is a lot of "short selling" going on in this stock, but it is not based on any "real problem area". It is just "speculative" trading.
I am not trying to "tout" this stock. I personally am in at $1.90 per share, and was up over 200% at one point, and was not even "tempted" to sell.
This is an unbelievable opportunity to pick up a winner in the O & G sector, for those who are willing to take advantage of it.
If nothing else, take a small position for your "future well being". The downside from this level is "minimal", and then only for the short term.
The above is JMO and worth exactly what I am charging for it.