GeoResources, Inc. (NASDAQ:GEOI)
A natural resources company engaged in two principal business segments: oil and gas exploration, development and production; and oil and gas drilling.
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I have been focusing on the energy sector for several years now. I started off in Frontier Oil (FTO) back in 2003 and then Western Refining (WNR) a couple years ago. Today, the refining industry is not what it was a few years back. Margins have gotten very tight due to demand and price of oil. With all that said I still felt that energy is a good play but where and what part of the energy sector? Well after intensive research I ran across GeoResorces (GEOI) and this management team reminds me of Frontier Oil. A talented team, growth strategy plan. Frontier plans on expanding current refineries and GEOI plans on acquiring land, companies, etc. Plus, with Geo growing and with the remarks of Exxon just days ago about trying to increase their proven reserves and the fact that it has gotten quite difficult and expensive to find additional oil I feel this has a lot of upside potential. I am looking forward to 4Q07 results. I have been very blessed the last few years with my returns on energy and I feel this will be another huge winner.
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I like this company a lot. Small caps are tougher to find and follow but the return is often worth the trouble. The thing that attracted to me to this company originally in October 07 was that is was in the energy sector which I percieved was undervalued at the time and that the management of the company had seemed to make consistent, conservative good decisions. Anyone who has had much dealing with energy company management know that consistent, conservative and good are not often used in the same sentence. I picked five stocks at the same time looking for one that I thought could get me my 100+ icon. Two of those had good runs and looked toppy so I have sold them. The other two are in the basic metals sector and I still like them, CLF and RIO although I would not probably be a buyer of either at these levels. However, GEOI to me is kind of like a Fool Rule Breaker. I bought some for my own account about the same time I added to Caps and then added to that position right after the first of the year. Evaluating their recent acquisition and their 8-k operational update as well as the increased capital budget, I am seriously thinking about adding some more at these levels. To me, this says a lot about how much I still like these stocks because I am not sure that I have ever added to a position when it was setting 52 week highs. Since I am in this for the long term, adding at these levels doesn't scare me at all.
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Multiple insiders holding recently unactivated buy options over current share price.
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Undervalued growth stock
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its growing
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Under the radar growing oil production co, p/e is under 10.
Completed an immediate accretive pact to top & bottom lines, multiple insiders calling up buy options over the share price.
Oil near $90 a barrell will make this company even stronger in the future. Low float.
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Excellent non-dilutive acquisition, cash flow instantly doubled.
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good, but short history
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Great numbers and is getting lots of play. Natural gas is an increasingly important market/
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Is the market asleep? With oil nearing $90/bbl this oil production company doubles its reserves and still remains under the radar.
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