"No confidence" LOL...I have been at this game a long time and have won much more than I have lost. I have built a lot of wealth by purchasing great companies and ignoring all the noise- just waiting things out. I try to at least double or triple my money every 1-3 years. I made a ton with Gary Evans in the past and have every reason to believe I will do so again. The reserves this company holds is tremendous and is not really recognized by the street. Which is fine by me! I prefer to be with a company under the radar. When MHR gets around 6-8 the Buy recommendations will start to come in. I have every confidence in this company and management team.. In case people forgot, a ton of big money is invested in this company at 4.50....D
IF the eagleford sale happens--- he raises his price target right back up to 6.50 (after the stock has already gotten there) Remember he's a former SELL SIDE ANALYST and old habits die hard.
He has given NO value at all to the Utica acreage- he is ONLY giving value to the PROVED reserves of the company.
The thing to watch now, is the other analysts opinions in regard to MHR. The Utica acreage is very valuable. Probably in the range of a very minimum of $5,000/ acre to $10,000 per.
Pipeline BECOMES very valuable once it is full.
Wall Street is as usual very impatient.
I personally want to see them use the money WHEREEVER they get the greatest ROI. Thats all that matters.
This company WILL get to the promised land, even if Gary has to do a leveraged buyout with NGP to get there. The acreage works( four nice plays)--with or without their approval.
Just remember it's on sale at 86% of book value. (Regardless of the high debt load).
I hope they beat it down, so i can buy more.
Slabman, wake up and buy!