Miller Energy Resources, Inc.(fka MILLQ)

[Timothy Smith]

Good points to consider about what could happen.

I believe that value is its own catalyst, it is valuable to note that there are significant near-term catalysts that could re-price the stock up toward its intrinsic value:

Progress in achieving its Alaska milestones. Over the next few quarters, the company should achieve a production run-rate that validates its proved reserve valuation.

If the shares remain undervalued even after the company cranks out large positive free cash flow, we would expect stock repurchases to take place to further enhance intrinsic value per share.

Management is well-aligned with shareholders, and has strong financial acumen. The current President, David Voyticky, founded the value investing hedge fund Red Mountain Capital. The CEO, Scott Boruff is a former investment banker and crafted the "deal of the century" buyout of Pacific Energy's Alaska assets.

Achieving the higher production rates and cash flows will also enable Miller to dramatically lower its cost of debt. This will further boost profitability and help Miller explore and develop its vast probable and possible reserve base.

Buyout possibilities - the Cook Inlet has seen acquisition activity in recent years. As Miller enhances production and cash flows, buyout interest from private equity firms or larger independents such as Apache (which owns other fields in the Cook Inlet) should emerge.

Source: http://seekingalpha.com/article/322262-miller-energy-resources-looks-massively-undervalued