Chart players

[Swany]

Braden and ALL, You may have read this info found by picassa, very interesting read:

GMX Resources: Emir for a day


It would be great to be the emir of Qatar, sitting atop massive reserves of natural gas as prices for the commodity parallel the rise in crude oil prices and top $13 per million Btu.
But as a small-cap investor you can get the next best thing with GMX Resources, Inc. (Nasdaq:GMXR), a “pure play” exploration and production company based in Oklahoma City.

“Pure play” is when a company’s stock price correlates highly with a single product or investment theme — in this case, natural gas. Much of the play in this pure play is the next big thing in U.S. gas production — the Haynesville Shale in eastern Texas and western Louisiana, which some experts think may turn out to be as big as the Barnett Shale under the Dallas Fort Worth metro area.

A test in late May of a well owned by Penn Virginia (NYSE:PVA) that lies just west of GMX’s acreage showed strong production potential at relatively low cost and is prompting GMX to accelerate its own plans for development.
Tests on Haynesville and Bossier shale sites neighboring that of GMX's acreage have been running so positive that analysts at Jefferies & Co. decided to raise their target on GMXR to $63 from $48 on June 2, 2008. On June 17, GMX announced the acquisition of 9,865 gross / 7231 net operated developed and undeveloped acres mostly in Harrison County, East Texas and Caddo Parish North Louisiana, which includes an average of 85% working interest in 11 units, producing 1,900 mcfepd. The news sent the stock price up to new highs over $70.

To reflect the increased acreage position and rig development in Haynesville, on June 18, Jefferies raised their price target on GMXR to $82 from $63. This price target upgrade was on the heels of Collins Stewart's June 17th increase in price target to $86 from $67, also to reflect GMX's increased acreage position.
Referring to the Penn Virginia test, GMX chief executive Ken Kenworthy said on a May 7 earnings conference call that indications are that the GMX properties have even bigger seams of porosity — that is, where gas is likely to be found. “It does appear that we do have the thickest section of porosity in the shale portion of the Bossier/Haynesville Shale,” Kenworthy.
The company has developed only 36% of its 435 billion cubic feet equivalent (CFE) in proven reserves and has a total of 2 trillion CFE in proven, probable and possible reserves. The goal for 2008 is to raise the development level of its proven reserves to mid-40%. The company’s own estimate of its NAV (valuing proven, probable and possible reserves at different levels) is $123 per share.

On top of that, the company has determined that there are 50 million barrels of oil at conventional, shallower levels in the Haynesville leases. Layered deposits are typical for this formation so that operators can produce oil and gas from traditional vertical wells as well as drill horizontally for shale gas.

Shale gas is a non-traditional source of natural gas that is popular because of high energy prices and new technologies, namely, horizontal drilling and hydraulic fracturing.

Directional drilling provides access to reserves located underneath existing structures or in highly compressed seams, such as shale, by drilling horizontally. Hydraulic fracturing involves pumping water into the well under pressure to cause fractures that allow a higher rate of production. Further enhancement comes with 3-D seismic imaging, which helps guide exploration to actual pockets of oil and gas. GMX, for instance, has a 100% success rate across 335 wells.
The company has invested $60 million in infrastructure, including its own rigs, and this makes it the lowest-cost producer in the region. In response to an analyst’s question on the recent conference call, Kenworthy said that the company would hire third-party rigs to accelerate development, even if that raised average costs somewhat.

GMX beat consensus estimates for the first quarter ended March 31 by reporting earnings of $0.40 per share, 25% ahead of the $0.32 consensus and nearly double $0.21 in the year-ago period. The average estimate for the current quarter, ending June 30, is $0.50, compared with $0.26 a year ago. For all of 2008, the forecast is $1.91, compared with $0.93 in 2007, rising to $2.62 next year.

Revenue estimates for the year are $129 million, an 90% gain over 2007. Currently the stock has two “strong buys,” two “buys,” and one “hold.” GMX closed Thursday at $67.52, giving it a market cap of $1.12 billion.