Has anyone thought about selling those Nov 7.50 puts? I mean really? 1.25? WTF? So...you sell a 100 of em now and pocket $12500, downside is the stock is put to you for what equals 6.25 if below 7.50 the 3rd Friday in November. You only lose if MHR is below 6.26! 6.26 the 3rd f'in week in Nov??????? F me if thats the case! Really, what am I missing here?
Your analysis implies that it is extremely unlikely that MHR could fall below 6.25 by November. That optimism is ever-present here.
This for a company that is losing money and will continue to lose money for a while. A company that is completely dependent on the credit markets for a steady flow of cash to continue operations.
To quote from the most recent 10K:
"We have a history of losses and cannot assure you that we will be profitable in the foreseeable future.
Since we entered the oil and gas business in April 2005, through December 31, 2010, we have incurred a cumulative net loss from operations of $41.1 million. We also recorded net losses in the first three quarters of 2010 and in the year ended December 31, 2010. If we fail to generate profits from our operations, we will not be able to sustain our business. We may never report profitable operations or generate sufficient revenue to maintain our company as a going concern."
Another quote from 10K
"We do not have a significant operating history and, as a result, there is a limited amount of information about us on which to make an investment decision.
We have acquired a number of properties since June 2009, and consequently, a large amount of our focus has been on assimilating the properties, operations and personnel we have acquired into our organization. Accordingly, there is little operating history upon which to judge our business strategy, our management team or our current operations."
MHR is a speculation not an investment.
Bash this guy if you want-but I respect that he keeps my enthusiasm in check. Several years ago I was big in CHK and there was this poster there named "Scottlows" who was a CHK hater-constantly bashing all the way from $20-up to $74 and preedicting that CHK would fall to $5 (it only made it to around $8.50 I believe)everyone laughed at him (even me) not only was this guy a basher-but he was also talking about how the market was going to crash-how the banks would fail and how we would all be in a new Great Depression. HE WAS DOING THIS 2 YEARS BEFORE THE CRASH!
Now this "not a Short" guy is much the same except that his posts are much more respectful to the board despite those that are less respectful in their replies.
Sure I disagree with him-but he keeps me honest about the risks and the downside and I like his posts for that.
I (for one anyway) appreciate his posts and that he can say his part in a respectful manner. Makes him seem more intelligent that many of us.
Keep it coming "not a short" I enjoy your posts.
Well, as you know it all came to pass
As a longtime lurker, up till now I have given you some leeway as a devil's advocate type that, although misguided, can occasionally bring up a point for the board to debate. With this post you have revealed more ignorance than can be overlooked. For all your posturing about your investing experience, you obviously have not read many 10K reports. That you would not only react to the disclaimers about risks, but also waste our time posting about it shows that you are here for self serving reasons and are not interested in good debate. You are now, in my opinion, worthless to this board and the discourse.
To all the other knowledgeable posters, Thank You! RRB we exchanged emails a number of years ago about MLPs and your insight is still very much appreciated. This is a great board.
I feel like the Geico guy under that rock...back to my lurking. Just had to vent about the idiot.
When clowns like you show up and bash a stock, it only strengthens my belief that MHR is going higher. You have been dead wrong on MHR since you first showed up.
Folks that are shallow like you are easy to read. We can hear and see the fear you have that MHR is prospering and thriving and climbing higher. Your bashing messages on this board will do little to stop the climb to $10/share.
We just picked up a nice amount of production, acreage, equipment, pipeline access and field personnel. Soon we will be closing on NuLoch and our production will be pushing 10,000 boe/d by year end.
That must frustrate you knowing that 60% of that production is oil and liquids. It must really burn you up that MHR will be raking in significant amounts of cash flow and will be able to fund more drilling, more acquisitions of production and and more acreage acquisitions.
We are well on our way to a 1+ billion market cap, a rock solid balance sheet, a strong production profile with stable, moderate decline properties and plenty of cash to fund drilling.
That's a great question for Shortie and his friend Buttchucky. If you sell'em they will probably buy them!
My calls took a pretty big hit today. It will be interesting to see what the rest of the week brings. The "experts" that have been bearish on the market have come out today bragging that they are right because the market started a pull-back today. I'm not convinced. If money comes out of the market, where is it going to go? Bonds, money market accounts, commmodities? Now probably is not the best time to for any of those. Maybe money starts flowing back into real estate? I would be interested to hear thoughts from others regarding the near term direction of the overall market.
I'm still very bullish on MHR. MHR has real assets that are very valuable when oil is at $80 per bbl. If the price of oil stays above $100, or if the price of natural gas rallies, then MHR looks even better. I hope Evans is able to load up on hedges for Nuloch's anticipated production before the price of oil comes back down.