MHR dropped from 7.70 to 5 prior to the earnings today. This was market driven and not MHR driven. Look at CRR, GEOI, WLL, BEXP in the same time period. It was to bad that earnings came out today. The shorts piled on as one of the few they could. What has changed in the story from yesterday or from when the stock was at $7.70? As we all know MHR is in the best 3 shale plays in the US. The land alone is worth more than the current share price. In a few weeks the PPS will be back over $6 and takeover talk will rule the day again.
it wasnt, in fact it was good, only a penny loss after you strip the extraneous crap out, thing that scares people is oil price falling, which is covered totally by the new and old hedges for 2011 as per Gary yesterday in the conference call. The Sable Hunter and the Oryx Hunter should be "great" as they have now provided us an isopach map, with thickness' shown. Guess people dont get that EACH 640 unit will eventually have between 6-8 horizontal laterals on it. They haven't even started true infield drilling like EOG. I think WHEN they announce the JV in the Marcellus, as Gary has mentioned TWICE, the stock rockets up and catches the shorts hanging. Think the down "attitude" for the talk yesterday is from them also taking a hit on their common stock holdings just like us. Got to remember they are in the SAME boat as us, and they will now ATTACK to raise the common stock price as they dont have big salaries--they have BIG option and common stock positions. Personally, i like that, as i dont want someone making 5 million a year salary while the boat is sinking. I see the Marcellus JV coming within the next 60 days-provides liquidity. The pipeline standalone loan comes quickly too, which provides even more liquidity. Gary's a very smart guy and now that he's (his stock) under attack by these shorts, he will break them by any means necessary--even if that means selling pieces off in order to break them. JMHO