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Magnum Hunter Resources Corp. Message Board

  • lake6342 lake6342 Nov 29, 2012 7:26 PM Flag

    Lawsuit any merit?

    Any thoughts on the lawsuit? Not great timing, I was hoping to see news on the Mobely plant or the Eagle Ford and we get a lawsuit posting in the news instead.

    Sentiment: Buy

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    • What lawsuit? The press release states "investigation."

    • This is NOT a lawsuit. IF one is filed in the future, then MHR will prevail. The "business judement" rule is strong and gives the board lots of running room.

      To imply that additional shares will "dilute" is a leap of logic that is not justified. It depends on WHEN the shares are issued and WHAT MHR gets in exchange. IF the shares are used as a currency to buy good assets at a price that enhances the value of MHR, then it is not dilutive. For example, shares were issued as part of the purchase from Sharon Energy for the Eagle Ford leases. This was a wicked GREAT buy. It enhanced value for existing shareholders and did NOT dilute.

      The use of shares for an incentive program will motivate management to create share value and to avoid making moves that dilute value. I want management to have lots of "skin in the game" even if some of that skin was given to them as an incentive rather that bought on the open market.

      The share price action of MHR has not pleased me, but I must note that the entire sector has had this problem due to a vast number of reasons. The only management errors that I think have taken place are with respect to the MWE processing plant. GE said as much on the conference call and MHR will learn from that experience. I suspect other minor errors typically occur, but that is the nature of business. If you want "risk" free performance, buy government bonds.

      Sentiment: Strong Buy

    • These guys are "class action" ambulance chasers. Check it out....

      There are 6 pages of similar class actions against companies..just since October alone the following companies are on their list of "suits" or "investigations" having been issued: CMN, TIE, OUTD, BXG, MHR, KITD, HIYS, BMTI, TEA, RAH, MNKD, GBX, JEF, CXS, KYAK, DUSA, KBW, JDAS, WRC, OPNT, WMCO, SHF, PSSI, SEH, ZZ, FNSR, WCBO, CYMI, VHS, ACOM, CASC, ARAY, CYMI, WCBO, UDRL, ELX, LFVN, AMNL, and CLX.

      That's hust page 1 folks, there are 5 more pages...see for yourself!

      #$%$ ants!



      Sentiment: Strong Buy

    • I'm at my last level of shares on the upside and I need to reload so if the price goes down that will give me a chance to pick some up so this is great news.

    • Where does this come from ... these guys looking for gas/oil and Faruq wants to dilute shares. What? You want a part of a great company so you want money? What? You protecting me? What? ,,, What?

      Sentiment: Strong Buy

      • 1 Reply to mcjdog
      • I don't think Faruq wants share dilution apparently the MHR board recommends that the company can issue up to 350 million common and 15 million preffered along with cushy incentive shares. I don't mind if management is rewarded but they have to perform for me as a common shareholder. We do not need MHR to resemble CHK or Sandridge Energy as far as corporate governance.
        Not saying I am joining the lawsuit but I want some results in 2013 that will benefit shareholders on record right now. Why have the ability to issue so many shares unless we need it for capital and the Eagle Ford does not sell? Time will tell right now I will give Gary the benefit he has been in this rodeo before and took care of his previous Magnum Hunter shareholders no reason yet to think he won't do it again.

        Sentiment: Buy

    • Any merit? watch how fast the pps drops tomorrow that should give you some kind idea if there's merit or not.

      Sentiment: Strong Sell

    • Garbage lawsuit. I don't know how the class action lawyers can sleep at night. The fleecing of America.

      • 1 Reply to jdberwanger
      • No lawsuit is garbag! It will cost money to defend in court.And the only one fleecing any one is G.E. and the board of MHR. I posted that the proxy would disclose this very action.The T.A. was gagged by G.E. and this too was posted.You don't increase your A.S. unless you are going to dilute them,and that too has been posted as fact,he has done this all along to stay afloat.Don't blame lawyers for G.E. action's they are not the cause of their lawsuit G.E. is.Hopefully the board will come to their sense's and kick G.E. to the curb.