Don't think that awards of options or rs to executives who have destroyed value constitutes a positive signal. The open market purchases are few and small and notably not made by the execs.
This company has been poorly managed with little appropriate attention to risk management. The hand picked board has not maintained independence and acted responsibly. The strategic missteps have been large and frequent. This stock is and will continue to trade with a management discount until more stable hands take the wheel. Never let a Geologist run a company!
I'm fairly new with GMXR but am buying as many shares as I can! The more I look and research GMXR the more attractive it gets. 2012 should be a great year! Bought 1000 yesterday, will buy at least another 3000 shares!
example of good indicators...
- institutional bought twice as much as they sold in the last 90 days!
- no significant insiders selling...
- growth estimates for 2012 is 164% vice 2011 was -214% (due to cost of BAKKEN play)
- short interests decreased by 28% (shorts are starting to get out)
any opinions out there?
Although I'm way long gmxr (dimes look like dollars) it is something that will take a year to hatch. If not prepared to stay that long, it is a moot point. Even with the high debt ratio which is amortized, it is definitely a buy. I have been adding all the way down which is an investment no-no in the big boy books and a philosophy I've kicked aside for gmxr. I think when they show profit which I'm hoping is next year it will be a rocket ride. And when ng is finally properly valued, it will be sweet. But gmxr is not one of my core holdings. Sd is one of my cores who is also heavily leveraged. Instability in the middle east will eventually come to a head since arabs will be arabs and oil prices will go up.
GMX announced that the Wock 21-1-1H would be in production in Stark County ND by Oct1.They announced that the Taboo1-25-36H operated by Slawson in McKenzie County ND and the Marsh 21-16TFH operated by Whiting would be spud on Sept 15.They also announced that in the 4th quarter a rig would be moved to the Niobrara shale to begin in that play.Those not familar with the Bakken wells dont come any better than those drilled in McKenzie ND.Most wells in that county have a 1.5 yr payback and make over 2,000 boe.After doing research on GMX I will give them credit for one thing they are starting a full blown oil drilling program where as before they were all nat gas.I still think this could be a homerun stock at this price and well worth the gamle for someone looking for Bakken and 3Forks growth exposure.
The management is still focused in the right direction in the right area. I will almost feel sorry for the shorts when the train leaves the station. It will be ugly for them when this pops and it will. The scramble for cover will take days of double digit gains. Some of the highly margined shorters will lose their houses as well as all they have in their brokerage account and I'll be the one with the 1990 Dom Perignon, skimmer, and really wide grin on the Riviera beach.