Warren Resources, Inc. (WRES)

The stock price is undervalue since the economic crisis is almost the end. Demand of the oil and gas will pick up next year, the earning per share will recover next year.

Well below low point in historical pattern. Volatile with good upside potential

Warren Resources is at a crossroads in regard to whether it can become financially viable or whether the natural gas price decline will keep it from investing at a rate needed to maintain a sufficient revenue stream to continue investing in new drillings. The smaller producers have to balance capex with debt or risk thier non-producing wells or end of life wells zapping them of future gains by new drilling. Warren resouces took a large hit in their share price this week after it priced it's new share offering of 11.78 million shares at $2.60 apiece, or 14 less than the price at the time. The further decline in price to $2.56 is below the "dilution" price. In general, I don't view all stock issue as dilutive. It depends on what is done with the proceeds. New capex or a means to increase revenue can be positive in the long run. Overall Warren intends a mix of reducing debt and development activities in California and Wyoming. If natural gas prices remain depressed then I see Warren Resources as high risk. Overall, a cold snap this winter and successful drilling of new wells should put Warren back to profitable with a share price in the $4 range.

I think the market is seriously underestimating the long-term potential for energy associated profits. I'm throwing a big net across the decent small caps in the industry.

Current 3.44, Sept 19 09. Limit 2.22

I simply used the screener to find all of the 5 star stocks with the greatest 52-week losses. 5 stars should make them good picks and the high 52-week loss should make them cheap. We’ll see how it works!

hopefully

Improving Professional Opinion

insider buying

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=218211&t=01009925884321352196

WRES ranks near the very top in terms of bang for the buck. With 38 MMBOE of proven reserves (47% oil, strip pricing) and 150 MMBOE of potential oil reserves from its California operations alone (i.e. not including its coalbed methane Sun Dog project), this company is one of the best E&P's to own. While secondary oil production is more expensive than primary production, the increased cost of WRES's waterflooding operations is becoming less important as the price of oil increases. Good natural gas hedges should help the company weather current low natural gas prices. Its large oil reserves and the recently improved price of oil should help alleviate concerns about the company's leveraged position.

Exploration... green isnt gonna be here tomorrow, and we wont stop trying to find more oil either... undervalued.

bravobevo penny stock pick

WRES is my first and only speculation with real money and I am way in the hole. I am pretty sure I will at least get my money back, but I am less optimistic of the ridiculous gains I thought I would get. No more speculation!

This is a favorite of mine. This one is a sure bet and has a very good balance sheet. Could see $1.60 before its way back up.

I can't see any reason why Warren should be this cheap. You could quintuple your money buying now.

Warren Resources, Inc. (WRES) is an independent energy company focused on exploring and developing domestic oil and natural gas reserves, primarily in Wyoming, California and New Mexico. The company's management team has 29 years of experience on average in the oil and gas industry, and its technical professionals have 26 years of experience on average in oil and gas operations.

Oil prices have fallen 70% since hitting a record $147.27 a barrel last summer, which means in just five months, crude has given up all the price gains it made in the past four years. Recently, many investors have fled from anything related to this commodity, but in the long run, dwindling supplies, resurgent demand, and a lack of investment will potentially cause crude oil to double, triple, or even quintuple in price over the next decade. The added inflationary pressures by the U.S. government are sure to exacerbate the situation.

Although buying shares of an ETF such as USO that tracks the spot price of crude oil is one great way to take advantage of these oversold oil prices, buying shares in oil companies that are drastically undervalued will most likely offer a much greater return. Warren Resources is one of these heavily discounted companies and currently trades at less than half its book value.

Currently trading at a P/E of 2.55 and PEG of merely 0.05, the company has $552.6 million in assets and $156.9 million in liabilities. Two analysts believe the stock is a "Strong Buy," three believe it's a "Buy," and four believe it's a "Hold." The average of their price targets is $10.40 (the stock closed at $2.04 on Friday).

In November, insiders bought more than a million dollars worth of stock, giving investors strong confirmation that this is an excellent time to take a position. Because of the steep decline in oil prices, the company has reduced its capital expenditure by approximately $18 million and is in the process of reducing G&A costs. With $34.53 million in cash, the company is well positioned financially and capable of acquiring other properties from peers forced to sell their stakes at bargain prices.

this is a good solid stock at this price. I expect the price of this stock will rise heavily once oil prices return to normal.

As summer starts getting closer day by day, so will oil prices start to rise. Oil rises = more money for company high stock price.