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  GMX Resources: On The Way to College or Investing Good results?

              On the way to college I accidentally ran into a stock! I hadn’t noticed one particular before, so he and I had a friendly conversation. His name was GMX Sources or GMXR for quick.

              He said he is very small relative to most in his field, and his P/E Ratio is close to 45, which is higher compared to the overall sector average of 26.82. This tells people not to purchase him, but if you strategy six months into the future, you would know that this stock is undervalued. I am very bullish on oil and gas in the subsequent six months, because I met him. He was when above , and now is at . Even taking into consideration all stocks are way down from their all-time higher, he is nonetheless a bargain. A lot of folks would say that he is way as well risky of a stock, simply because he is trading about per share, but he is not. I am only 14 years old, and the way I look at this is-the downside on this stock is that it goes to zero (quite unlikely), and the upside would be close to price per share. Let’s say we acquire 100 shares at and the stock only rises to in two years. Then, you would make 00 in two years. The preliminary price of the investment was only and we produced 00 on it. That is a 700% return in two many years. The downside in this condition is that the stock goes to zero, so you only lost . When you are 14 you have time to recover from losses.

            Also, after the third quarter in 2010, GMX Resources released his revenue statement that revealed that its total revenue was ,833, 000. Their price of income was only ,790,000.  The excellent factor about the oil and gas industry is that the moment he gets the oil and gas wells constructed, the only expense is for operating the wells and payroll. Another attraction to me is-as of the third quarter of 2010, GMX Sources has continuously enhanced his assets, which helps make me assume he will carry on to do so.

             The only concern of mine for this stock is the lengthy term liabilities he has taken to purchase a lot more home and wells. Though debt is by no means wanted, I think that obtaining these wells bringing up far more and a lot more oil and gas is great for the truth that he can make way more cash on this oil and gas to spend off all his liabilities. With all these long term liabilities, he has substantially enhanced his assets by acquiring all of these wells. He has 5,591,000 in just his house plant and equipment. This tends to make the stock much a lot more valuable to me. As stated before, the much more assets in wells that just suck the oil and gas appropriate out of the ground with such a low cost of revenue is splendid. It shows that this organization is planning for the long term.

            To be reassured that this organization will go up, we can do a trick exactly where you divide the equity of the stock (five,432,000) by the shares excellent (28,260,000) to get the book worth of one particular share at .39.

              Also, just on March 7, 2011, James Merrill, an officer at GMX Resources bought 11,500 shares when the stock cost per share was .59. On March four, 2011, Thomas Casso, a director at GMX Resources purchased six,500 shares at a price tag of .60 per share. This is fantastic news for the firm. Even in the final month, the stock has been above a share, which means the stock could just be taking a dip and will rise back up. I at present bought this stock in my personal fund all around 5 dollars, due to the fact I knew there was a wonderful opportunity of it increasing to the book worth of  .39 every share in the up coming couple months.

              It will just be a matter of time until finally this stock “pops” once some of the debt is relieved. The debt is the only thing individuals are worried about, and if that is gone, the stock will soar. This is why I am glad this stock and I met.

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