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GMX Resources Inc. Message Board

  • lawrence.ducharme lawrence.ducharme Dec 4, 2012 5:06 PM Flag

    13 for 1 split

    Even after the split when this hits 10 cents it be will only worth 1.30. Things are getting scary and time is ticking, they better have something better than this split or we are all done in 6 months.Management needs to step up and communicate these guys are responsible for the direction of this company.

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    • Lawrence - you are pretty much an idiot.

      I really wish you would go away and would stop misleading investors with your constant psycho babble.

      You know nothing.

      • 1 Reply to clancy06i5
      • Seems like the only dis functional idiot respnse on this thread is you Clancy the clown, I think I hear your mom calling it must be time for you to deliver papers.The rest of it stirred interesting dialogue so it seems you sealed your own fate, remember this important adage, It is better to shut your mouth and let people think your a idiot, than to open it and remove all doubt.So take some advice and go take your meds.

    • How on earth are they going to get the money for more capex? I don't see any avenues open to them.

      • 3 Replies to ctx_coverage
      • 1. Asset sales
        2. Joint Ventures
        3. The money they already got from the last asset sale
        4. The money they already got from Blackstone
        5. Conserving cash by paying some of the bond interest in kind or stock.
        6. Conserving cash by deferring interest on the pref stock still seems like a possibility.

      • They will fund a GROUP of wells with a "loan-JV agreement" from GSO-Blackstone. The loan will have a probable 14%+ note rate but with a discount and "fees" it will approach 20%. Blackstone will receive an unspecified interest in the group wells. As an "incentive" for this agreement, Blackstone will receive a substantial number of restricted shares. The terms of the JV will likely not be published but Blackstone will contractually receive their moneys first with a possible option to increase their interest in specific wells at a predetermined dollar amount. GSO-Blackstone will catch GMXR coming and going. It may look like risk capital but it won't be. GMXR is the finacial addict. GSO-Blackstone is the opportunistic dealer. This is not a mutual relationship and it can be terminated at GSO-Blackstone's whims. The winner in all this mess is Blackstone, and they are smart enough to take full advantage of GMXR's cash woes. Their 20% interest at what someone stated was $.18/share was brilliant. This prevents a "white knight" and puts in place a large voting/controlling block that protects their ever-increasing debt control. As time goes on...more debt..more fees...more free commmon...more control...They will rinse-wash-repeat this formula until they decide to pull the financial plug. No one in his right mind will lend GMXR money as they will be subordinate to the GSO-Blackstone holding. SOOooooo, beyond loans from have issuance of common stock. Reverse split..stock issuance and some small amounts of drilling is funded. Strangely, I think GMXR will be a successful company. This will be after GSO-Blackstone has taken the company private or through bankruptcy and seasons it for a year and then brings it public.

      • Unsecured debt traded today at a yield of 42 percent, so you can forget about borrowing money for capex.