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GMX Resources Inc. Message Board

  • cashewking05301 cashewking05301 Oct 5, 2010 6:34 PM Flag


    Barclays just paid CHK 1.15 billion for 390 billion cubic feet of reserves. GMXR has about 28 million shares with market cap being around 140 million for 355 bilion cubic feet of reserves. Something doesn't make sense to me ?

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    • I thought the same thing. I believe many energy stocks are highly undervalued by the short biased hedge funds pushing valuable firms into the ground because no uptick rule allows them to short stocks for far less money (capital) than they otherwise would have to invest).

    • Wasn't GMXR supposed to have a bank credit line revaluation "by the end of September"? My guess is there are troubles with that, and that's what has led to the additional cap-ex cut.

      While I agree GMXR's assets are being undervalued, the problem here is that the Co. doesn't have the financial strength necessary to develop the assets. They'll need a partner or raise more equity, but when everybody knows you're desperate to raise funds, that's when they're the hardest to come by.