Mexco Energy Corporation (MXC)

[littlefish]

I am starting to (let it run with smaller sells). But i have a theory why this is running.
The 'smart' money is looking at the production #s the comapny put out and using those #s to estimate earnings. If they use the straight 21% and apply it to the 2 wells they would be coming up with something like 20+ cents in EPS from the 2 wells in the quarter. Plus the rest of the company biz so they could be estimating 40 cents EPS for say August.

But that is wrong IMO and the fund or big person buying up these shares will eventually figure that out and go '$%#@, I was wrong'. Of course, they won't dump suddenly. And in the meantime they are probably securing the shares.

If the comapny doesn't come out and clarify the wells they bought then this could actually maybe even carry through to August when the big people would be looking for say a 40 cent EPS Q. But they will be disappointed to find the wells are not owned at 21%+ (not the 2 big wells) at least as I understand it and instead are pooled wells at a loweer % (but the comapny themselves didn't even know if this was the case so I could be wrong- the uncertainty alone had me cut my position quite a bit happily for a triple).

The up side is pooled wells give a more steady flow of production IMO and so probably better long term earnings if the % ownership is somewhat equivalent. I sat and thought thru all this but can't recall how I arrived at a valuation based on about 6 wells pooled vs 2 wells nonpooled at 21% but it was all guesswork since the company at that time still didn't know the exact structure of the purchase. Hopefully there's some slight disappointment down the road so I can buy back some of these shares since the comapny is now familiar to me!

Otherwise, I'll let her keep running and peel away a few shares here and there.

LOL, sold a little bit more at $17.19. Sold some earlier in the $16s. Still ahve a ncie chunk though. Glad I spent 1 1/2 months loading up on this! Not all the way but I got a good chunk when I got my starter position.

My wife is gonna squawk at me for selling too much the last couple days LOL. Ugh.