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mjonesy1985 (88.41)

Why I purchased shares of NGAS before the close?

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6

March 04, 2011 – Comments (3) | RELATED TICKERS: NGAS

With a 52 week range of 0.35 - 1.75 and a daily trading volume of 400,000 to 900,000 shares on a gpod day. Today we saw incredible buying activity with huge volume of 3,671,763 traded in just one day. Today it closed up 6%

Next week I think it breaks above 0.66 - 0.67 to the 0.80 - 0.89 level. With 0.66 - 0.67 as minor support and 0.62 as major support.

Either way I think this breaks into a new trading range next week. In before the weekend lets hope for a great start to the week with a nice pop in shares of ngas.

One to wacth here.

3 Comments – Post Your Own

#1) On March 04, 2011 at 10:08 PM, MegaEurope (< 20) wrote:

I like the '?' in the title.  It really drags the reader in.

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#2) On March 07, 2011 at 1:10 PM, TSIF (99.95) wrote:

Thanks for the tip, but from my quick check of NGAS, it's floating with the price of MHR which has a buyout on the table at .0846 of one of there shares for one NGAS. If MHR goes up before the vote then NGAS goes up. It's not going up on it's own merits and only has the potential gain of what MHR does. IF the vote fails NGAS is back down immediately to the low $0.40 range. They appear to be issuing stock each quarter to pay debt. There is no reason for it to spike to $.80 unless MHR spikes to $9.80, or a record high....they are lock step until the vote. Good luck.

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#3) On March 07, 2011 at 3:25 PM, ValuePEG (98.31) wrote:

TSIF - All true with the exception of issuing stock each quarter as they got a stay pending the takeover. But digging deeper you will find that the deal is literally guaranteed, 35% of shares have comittments to favor the deal - these shares are owned by NGAS executives, Magnum Hunter directly, and 3 firms capitalizing on the arbitrage.

Even more important is the glaring statements in their recent 10K and Proxy about their likely bankruptcy and inability to continue as an "ongoing concern". In fact part of that stay on the payment on the loan requires full payment of the loan upon conclusion whether the deal goes through or not.

To top it off their enormous mismanagement and slow evaluation process, in their acceptance of MHR's takeover, as detailed by their current proxy, cost shareholders dearly as 3 previous higher offfers within an 8-month period were declined or not acted upon within a timely fashion. No shareholder reading this would ever want to own a company with any of this inept management.

The final piece of information is MHR is already drilling 2 wells on their land to hold a 27,000 acre parcel, as NGAS had no money to do so.

So yes I have utmost confidence in the deal occurring and I own .3% of the common shares to back up my opinion. Not only do I see this as a way to gain entry into MHR at an ~5% discount, it's my small way of tilting the verdict.

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