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Magnum Hunter Resources Corp. Message Board

  • boonenrgtrader boonenrgtrader Oct 26, 2013 10:53 AM Flag

    What will the Earnings Call Bring?

    Many important updates including Utica production, pipeline JV or sale, sale of non-core assets, potential to issue more stock to eliminate debt, prodution rate for year end to name a few......BUT what about earnings. To see this stock go higher the way it deserves, we need to see some earnings estimates. It's great to be producing 25000 BOE/day, but, to quote a movie line, show us the money!

    The market is funny though....recently Cramer had the executive of Emerald(EOX) on his show....currently priced close to $9, you would think they were a good comparison for market value. I almost choked when they said they have TWO wells online and looking to double this number to Four in 2014. GIVE ME A BREAK!

    I would love to sit down with the analyst that has a $10 rating or higher on this stock and get an explanation on why they are not putting a BUY ALL YOU CAN rating on MHR!?! Well, but they have no debt with their last stock offering, it was noted. Maybe MHR should pay down all of its debt and spin off one Utica pad with 14 wells into a company worth EOX !

    I'm sure that any weakness in the production numbers or the expected earnings will result in analyst making comments on the risks with MHR, and completely ignore the potential......Until GE and his team show a solid forecast of solid earnings per share of $1.00 or greater and greatly reduced debt on the books, the analyst will not get behind this stock like it deserves.......BUT, using examples like EOX show how the street can greatly magnify the value of a company - eliminate the non-operating debt, demonstrate production of 30k BOE/day, and demonstrate an investment bank's estimate of the value of a JV/sale of the pipeline and this stock can easily be north of $20, in my opinion.

    Just pray that the current administration or the states that we operate in don't ban fracking!

    Sentiment: Strong Buy

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    • Boon, when I said MHR was worth 3 or 4 times it's price, I was told that I was giving up all my credibility, but I still say it is worth $20 to 25. Monday should tell the real truth. Well at least we can hope so.

      Sentiment: Strong Buy

      • 1 Reply to upton1free
      • Upton, I don't know if I have any credibility to lose, but I clearly see the potential of MHR stock...Suntrust just recently rated it with a target of $11 per share - I called the analyst who noted that with more clarification of the Utica the target could be raised,.....also, noted the end result of the pipeline could affect this price going futher,,,,I don;t think a one year target of $20 is unreasonable.

        Sentiment: Strong Buy

    • EOX is a joke after reducing their stock numbers with a 7 to 1 split.

      Sentiment: Strong Buy

    • another big loss same huge debt same law suits that is what your earnings will bring.

      Sentiment: Strong Sell

      • 1 Reply to dwtreturns69
      • You are probably correct - but should have better information than last quarter on production and debt elimination......wouldn't you agree that debt should be a little lower with the non core asset sales?? If the EOY production is not in the 23-25k BOE/day level, then many traders will likely sell.....

        However, it will take a few more negatives than that to motivate me to sell given the tax effects on the gains many shareholders have achieved this year but not yet a long term gain...

        Based on what you have seen so far, when do you think the profit will turn positive? Levels of production and debt ?

        Welcome any rational input....

        Sentiment: Strong Buy

    • I don't know EOX, but I think you just made my point. You can either have small and slower, non-debted growth with a chance of profitability or.....the MHR model. Go in debt, acquire a bunch, sell off the dregs, drill a bunch, sell of some more, maybe get lucky with a pipeline ( i don't think it was all luck in this case)...all the time finding ways to keep enough cash flow positive and end up with a saleable entity larger and sooner than most. Gimmie the MHR model any day.