“Be fearful when others are greedy, and be greedy when others are fearful.” – Warren Buffett
A dividend paying company on the biggest exchange in the world that gets no love is exactly the kind of penny stock that screening results beg to find out why. GMX Resources, Inc. (NYSE: GMXR), far off its $6.48 52 week high, could soon see an instant boost with the supply worries in Nigeria and the escalating pressure to ban global purchasing of Iranian oil. Warnings from OPEC have already been publicized that if the E.U. turmoil gets any worse the 2012 oil demand could decline with a ripple effect in the emerging markets.
Founded in 1998 and publicly traded since 2001, GMX Resources has 264 net producing wells in east Texas as of a year ago. In a statement from the company’s website by their CEO, Ken Kenworthy, Jr., GMX Resources’ 2012 plan is Execution! The company, which generated 88% of their revenue from natural gas, will focus on timely, quality drilling, completion and production operations of their Bakken acreage.
Company Strengths
- Large, continuous acreage position in three high-quality Basins
- Strong historical growth profile with multi-year, lower risk crude oil and natural gas resources drilling inventory
- Ability to allocate capital to either crude oil or natural gas and higher rate of return opportunities
- High degree of horizontal drilling experience combined with operational control
- Significant infrastructure in place in the East Texas core area
Company Production
- The Bakken properties: Approximately 600 undrilled, 9,500′ lateral length locations, 52 potential operated 1280-acre units and 208 operated locations, with between 50% and 75% working interest.
- The Niobrara properties: 584 undrilled, 4,000′ lateral length locations, 95 potential operated 640-acre units and 380 operated locations, with an average working interest of 70%.
- The Haynesville/Bossier and the Cotton Valley Sand locations include 253 (6,500’) net Haynesville/Bossier horizontal locations, and 83(7,500’) net Cotton Valley Sand horizontal locations.
Based in Oklahoma City, Oklahoma, GMX Resources’ stock is traded under the symbol GMXR on the New York Stock Exchange (NYSE) and has 109 listed full time employees.
Website: http://www.gmxresources.com/
Company Snapshot:
Trading Symbol: | NASDAQ: GMXR |
Last Price: | $1.15 |
Avg Vol (3 month): | 1,325,910 |
Avg Vol (10 day): | 987,643 |
Market Cap: | 66.81M |
EBITDA (ttm)6: | 79.47M |
Total Cash (mrq): | $3.23M |
Shares Outstanding: | 58.09 million shares |
Shares Short (12/30/11): | 9.18 million shares |
Shares Held by Insiders: | 4.62% |
Institutions Holding Shares: | 93 |
Top Institutional Holder: | 3,339,752 shares Kennedy Capital Management, Inc. (as of 9/30/2011) |
Top Mutual Fund Holder: | 864,778 shares iShares Russell 2000 Index Fund (as of 9/30/2011) |
Contact Information: | One Benham Place 9400 North Broadway Suite 600 Oklahoma City, OK 73114 |
Investor/Analyst inquiries: | Alan Van Horn avanhorn@gmxresources.com |
Next Earnings Date: | March 1, 2012 |
Profit Margin (ttm) | -239.17% |
Operating Margin(ttm): | 22.09% |
Return On Assets(ttm): | 2.72% |
Return On Equity(ttm): | -128.35% |
Qtrly Revenue Growth (yoy): | 14.20% |
Operating Cash Flow(ttm): | $-65.85M |
Levered Free Cash Flow(ttm): | $-235.33B |
GMXR closing price for the week that ended Friday, January 20, 2012 was $1.15, down 0.08, on volume of 1,457,051.
GMXR is trading -15.06% below its 50 day moving average and -53.59% below its 200 day moving average.
GMXR is -82.25% below its 52-week high of $6.48 and 6.48% above its 52-week low of $1.08.
GMXR‘s PE ratio is N/A and its market cap is $66.81M.
GMX Resources’ Governance Risk Indicator (GRI®) as of Jan 1, 2012 is:
- Audit (Medium Concern)
- Board (Low Concern)
- Compensation (Medium Concern)
- Shareholder Rights (Low Concern)
GMX Resources, payer of a $0.578125 cash dividend on December 9, 2011 to all shareholders of record on their 9.25% Series B Cumulative Preferred Stock, is leveraged to the “hilt”. The companies oil operations are not seeing much profits having reported operating income of only $1.9 million as of the 3rd quarter of 2011. That, with a drop in gas prices in 2011 of 19%, GMX continues to borrow money at an extraordinary rate to stay afloat. Unless there is a sharp turnaround in natural gas prices, GMX will likely continue their borrowing trend until the company can affectively cut costs and increase production.
It’s been a rough transition generating revenue from natural gas to oil since the company changed direction in 2010 with the stock losing -91.96% since January 1, 2010. If successful, GMXR could be a safe long-play penny stock to pay out some huge profits to traders willing to take the chance. With 319.3 billion cubic feet of proven natural gas reserves and 264 net producing wells, GMXR is a viable buyout candidate.
About AimHighProfits.com
AimHighProfits.com strives to provide you with the hottest stock alerts in the market in Real-Time. We focus on stocks that trade for $5 per share or less, some as little as a few pennies with upside potential. Our goal is committed to producing and publishing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions and to inform you of the best stocks in the market before they move. Our focus is primarily on OTC stocks in the stock market today which have traditionally been ignored by Wall Street.
We have particular expertise with internet stocks, gold stocks, renewable energy stocks, biotech stocks, oil stocks and green energy stocks. There are many hot penny stock opportunities present in the OTC market every day and we seek to exploit these hot stock gains for our members before the average daytrader is made aware of them.
Aim High Profits Disclaimer
This is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances.
AimHighProfits.com is a wholly-owned subsidiary of Kelevra Media Innovation.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
For a complete explanation, please visit our disclaimer page.
ShareJAN