Down days have typically been on light volume days....you can imagine those that are taking big positions have established a good base, and are waiting for the earnings before they initiate additional purchases. If there is interest to buy out or start an activist position, then they figure they can wait - if earnings for the quarter generate a price drop they will buy at a discount. If the earnings call highlights good production numbers for for 2013 EOY and strong 2014 estimates, they may move quickly to buy the stock up to the position they need for obtaining a board position(s), which could influence an early sale, or leverage the price action up to create a significant profit for the base investment they have built to this point.....either way, big money has recognized the potential of this company's future!
Don't sweat this quarters' earnings, focus on the production estimates for the Utica and well drilling plans! Focus on the comparisons with other companies with similar production, pipelines, and acreage - you will see $20+ is feasible by 2nd qtr 2014! As soon as analysts calculate the value per share of the MLP pipeline, and add it to the share value of the production, and debt less than $400mil, and analysts' price targets will double to $15....break $13 and the buy-out option will quickly appear so they can get the remaining ramp in value...as for me, holding for $20 plus with Gary!
Sentiment: Strong Buy
Don't be such a pessimist. This stock is worth 3 to 4 times what it is selling for now. Until the shorts finitely , cover we will have these up and down days. When Gary gives us the low down on the Utica wells this stock should shoot to $10. GLTALs.
Sentiment: Strong Buy
Upton: Wow. GE puts out a presentation providing a detailed spreadsheet indicating the value of the company's assets, in management's view, is between 8 and 13.50 a share net of debt, but Upton says $22.80 to $30. Wonder who has better insight?
While I appreciate MHR needs to book Utica reserves and the pipeline is rising in value, not one analyst is estimating positive earnings for 2014 and yet Upton proclaims current value is three times current PPS. Why impugn your own credibility with such an outrageous statement?
Hope so! Would love to buy more in the 6's, but don't think it's going to happen unless some unexpected bad news surfaces. Bet there are a whole host of buyers ready to pull the trigger if it gets down below 7.