$MMR - Long term T. Boone Pickens Play
McMoRan Exploration Company, based in New Orleans, Louisiana, is engaged in the exploration, development and production of oil and natural gas in the shallow waters of the Gulf of Mexico and onshore in the Gulf Coast area of the United States.
BP Capital owns 678,421 shares, or 6.58 percent, of the portfolio. It has a market capitalization of $2.10 billion. Analysts expect MMR to hit $14.17, so at present there is certainly more room for the stock to continue its current growth.
McMoRan reported a net loss (for common stock) of $75.5 million, or $0.47 per share, for the second quarter of 2012, compared with a net loss of $50.2 million, or $0.32 per share, for the same period last year.
However, the EPS has also increased to 84.79 percent compared to the first quarter. Gross margin is showing positive results at 61.46 percent, whereas the operating and profit margins are at -1.98 percent and -1.94 percent, respectively.
MMR is an undervalued stock. With eyes set on Davy Jones, and an exploration program scheduled for one of the deepest wells in the world, MMR is poised for exponential growth.
With such high future prospects, it is easy to understand why Pickens favors these oil stocks despite interim losses. These short-term losses are of little concern to Pickens, who is invested for the long-term.
McMoRan is certainly a good long-term bet.
