How did you guys came to know of a gold mine like MCF?
I just came to know of it recently while reading a recent article on Mark Sellers, who has a large chunk of his holding in MCF.
Another amateurish question, but how do you guys screen or find out great value or growth stock?
Thanks in advance for your time and help ...
Wish I'd started with MCF at $2.50, it's funny because I looked at Contango for a few minutes at that price but passed it up because the price was less than $5.00. That's silly I know but there are too many stocks in that lower price range that are very questionable...I just do not want to do the work.
Nevertheless, as you know, below $5 can be very worthwhile and especially in a terribly bear market with huge price drops.
Your comments on the MCF coming cash and what developes afterwards in view of the historical exponential growth is what really makes this play the most exciting situation I've ever owned...and the stock does not have a huge downside risk.
Thanks for the positive comments on my post. I really tried to deliver something worthwhile.
Very well said and enjoy your post very much. Your post reinforced my past experience and believes on how to find a solid company. But I haven't done as well, I didn't keep notes on my past stock picks, even lost the screen script I used to find MCF when it was around $2.5.
You are right, also according to Peter Lynch, there are no golden rules in stock pick and also no so such thing called exit plan, all case by case, depends on how the situation develops for each specific stock. As I said before, if MCF doubles again, and it is still under valued after, it will be still a hold.
Let me say this, the core value of MCF is actually KP's business strategy. You can find lots of O&G companies simply buy other's reserve and findings, very few or none like MCF that can grow value in an exponential way. I am very interested to see what will happen after KP gets all the cash after Dutch and Mary Rose wells.
When researching LNG opportunities, COP mentioned MCF as well as Cheniere in the construction of the Freeport, Tx facility back in 2004. It was just a long shot at 8.50 back then with some IRA "fun money". Good luck
I think I came across another stock like I found mcf. I also was thinking oil was going up about 3 years ago and bought about 4 or five small oil companies and mcf started to move so I bought more and bought and sold and kept a core position and am I glad I invested that way. Now I've been doing this with Solar power, and maybe it will work out like mcf.
I received an email from the publisher of some investment newsletters I subscribe to--the email was promoting a new addition to their family of publications. Normally you can use the details presented to do a quick Google search and identify the company. The story sounded good, as did the financial data I found. I'm glad to be aboard.
I lucked out. Bought in back in 2002 when MCF was $3. a share. I was looking at small oil companies at that time, figuring oil was a sure bet, and MCF seemed to have great management and a great business plan.
Still holding. MCF still has lots of room to run.
Keep in mind I am an investor and try to hold a stock for a minimum of three years unless I see an indication I don't like which happens more than I would like!
Anyway I look for insider buying by a founder of a company and the more often he buys the better I like it. In the MCF case Peak has bought often on the open market and at one time maintained he had 99% of his assets in the company. Try to pay a price close to what the founder paid.
You do not find this situation very often but when it happens and the company seems right (good business plan, good balance sheet and a great leader) then buy it. It may take a year or two for the stock to move and the stock may drop a few weeks after you purchase it, but alot of these situations have worked very well for me long term.
The MCF situation is rare as hens teeth. I probably find at most 5-7 per year and they are not a sure thing(watch them close and listen) and then I only buy a couple at most, but you don't need alot of them.
Nevertheless, it does take some study and a few years of experience. Over time you should easily out perform the averages and a huge percentage of the mutual funds. Keep a journal of why you purchased and sold every stock, then refer back to it so you learn....generally I continue to follow stocks I sold for a couple of years to see what happened.
This is probably more info than you wanted?????
Of course, there is luck which is where you may want to use tarot cards or a wee-gee board, but I start with insider buying by a founder first thing. Hope this helps!
With all due respect Faloleader; IMO your owning MCF is not "investing", it is purely Speculating. I agree with you about their management/leadership, however this stock has no noteworthy coverage that I can see, doesn't pay any dividend and it is in a very speculative market(NG). Unless you know an insider and get your information ahead of the curve then you are as speculative with your hard earned $$ as a guy betting on Monday Night Football. Length of time holding an equity or other instrument is not the main factor in seperating a speculative play from a financial investment. Risk is probably more significant and it's hard to argue that MCF is not a high risk play for outsiders w/o insider insights regardless of their management team. So, if you have some insider insight then fess up, otherwise your constant cheerleeding is just another speculator hoping/wishing for more upside. A couple other items; You have MCF listed as a "Strong Buy" sentiment. Please define your educated view of Strong Buy. Finally, what is your Exit Strategy for MCF and what do you think KP's exit strategy is?