GMX Resources, Inc., (NYSE: GMXR) announces today that on June 20, 2012, the New York Stock Exchange (NYSE) provided notice that the decline in the Company's share price has caused it to be out of compliance with the NYSE's continued listing standards. Under the NYSE's rules, in order to get back in compliance with the listing standard, both the Company's ending share price and the average share price (over a consecutive 30 trading-day period) must exceed $1.00 within six months following receipt of the non-compliance notice
Hey Chicken Little/sdfoster- DEJ has a year and a half to address the first two concerns and 5 months to address the third which is a subjective concern which can be remediated by disclosing to the listing panel their plan to address the financial concerns.
GMXR went bankrupt because of declining natural gas prices. Natural gas prices are now increasing which will help DEJ. Your point is correct only in so far as DEJ current problems stem largely from the last few years drop in nat gas pricing but now that prices are rebounding that should not be as big an issue. In my opinion when some of the large LNG export terminals under construction come on line in 2015 nat gas will be the place to be which should make DEJ a prime buyout target. Rising prices should also help with financing deals since it increases the value of their collateral. Whether our management is competent enough to make this happen is a whole other issue.
I think there are a lot of differentiating factors between Dejour and GMXR. They're just two completely different operations. And the listing requirements for the Amex are much, much lower than those of the NYSE. Dejour also is not a company incapable of paying its bills and that will be established in the response to the NYSE letter. The company will substantially trim salaries and may even eliminate some positions - particularly in Denver - at the close of Q4.
The company's shareholder equity issue also will be resolved by the end of this month.
I also believe the year-end evaluation of Dejour's reserves will show a substantially higher figure than the mere $0.73-.0.76, which was factored in below the $2.35 nat gas mark. And that unto itself may serve as a catalyst for the stock and will certainly drive Zack's updated price target.
The primary reason a lot of folks - shareholders and management - are still in Dejour is because of the company's flagship property - Kokopelli. This whole thing, this whole story is basically about Kokopelli. And Hodgkinson isn't dealing Kokopelli without a mancos drilled. He'd be foolhardy to deal Kokopelli when one well into the mancos could add another $90-150+ million to the company's proven, producing reserves figure. That one event - literally this one event - is why a lot of shareholders and some of the company's officers are holding on. This is an asset play. It's always been an asset play and not a baby MHR or a baby KOG. When the company deals Kokopelli and or further develops that property, FINALLY it'll get baked into the stock, which will be trading for several multiples of where it is now.
That's the "what." I don't know the when. Is it late 2014? 2015? I don't know. I'd certainly think it's within that time frame, but I don't know the when. I do know the "what." And that's why I'm not selling a single share until that event happens.
Sentiment: Strong Buy
I disagree, the drop in NG prices had very little to do with dej 's declining price. Remember, they were not in the NG business during this time ($2.20 down to $0.11), it has more to do with management greed (large salaries and bonuses) together with incompetence or total disregard for shareholders (secret deals on equity raises).
what im saying is when a company faces delisting it most certainly can happen. This company relys on the stock price to stay afloat so they can do dillution to raise cash. I believe the dillition may have run its course and dillution is no longer and option. In summary this is the end of the road.
On April 1, 2013, GMX Resources Inc. and two (2) affiliated companies (collectively, the “Debtors”) each filed a petition in the United States Bankruptcy Court for the Western District of Oklahoma seeking relief under chapter 11 of the United States Bankruptcy Code. The Debtors’ cases have been assigned to Judge Sarah A. Hall. The Debtors' cases are being jointly administered for procedural purposes, meaning that all pleadings will be maintained on the case docket for GMX Resources Inc., Case No. 13-11456 (the “Main Case Docket”). The Main Case Docket can be accessed through the website maintained by the United States Bankruptcy Court for the Western District of Oklahoma