Serious replies only please. I got into MHR last month and I'm going to up my stake later this week.
With the current BOPD levels, with the company likely to significantly increase those numbers over the next two years, I wanted to get everyone's take on where you think the stock price could be - realistically - in a couple years, provided a buyout does not occur beforehand.
Would $21-25 be unrealistic?
I concur with you! They will get bought out soon! This is a takeover opportunity for a bigger company with a lot of cash who want to increase there volume of barrels per day on their balance sheet! Look for $20 a share before the end of the year!
Looking at the latest presentation, I see they currently show 2/3 of their reserves as gas! Wow! Ya think the market...or any buyers can get excited about this? Methinks the key to pps growth, along with a positive earnings report, is to acquire/prove up more OIL reserves. Going to take a while......
You might be wiser to buy the preferred shares and get the 8% dividend. Until the company shows a profit, the common stock won't be going above the 8 to 9 dollar range.
The range of the common stock will forever be held down without a positive EPS. This might be the quarter where they show a profit, but if it isn't then say hello to buying and selling MHR in the 6 to 7 dollar range for another 3 months.
It is a difficult balance that MHR management must play: growth vs profit. At some point they might relent and actually allow the company to publish a profitable quarter.
Thanks for the insight guys.
Oilman ... little surprised at the $10-13 figures two years out.
If MHR has an average of 20-25,000 BOPD in 2013, which is certainly very realistic, wouldn't that alone, in and of itself, push up the stock price into the $12-14 range?
And Gary Evans all but suggested on Mad Money last month that he felt he could get MHR into the $20 range, before being bought out, also referencing where his current BOPD was relative to where BEXP was when they were bought out.