Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas producer GMX Resources
With that in mind, let's take a closer look at GMX's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Oklahoma City (1998)|
|Market Cap||$131.71 million|
|Industry||Oil and gas exploration and production|
|Trailing-12-Month Revenue||$94.46 million|
|Management||Co-Founder/Chairman/CEO Ken Kenworthy, Jr.
CFO James Merrill
|Return on Equity (Average, Past 3 Years)||(33.8%)|
|Cash/Debt||$4.07 million / $258.85 million|
Cabot Oil & Gas
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Currently, we have a huge natural gas excess supply and a crappy economy, but I think over the long term natural gas will play a bigger role. [GMX] is cheap and small so I am hoping one of the bigger players is willing to buy it soon while natural gas prices are still dirt cheap.
In fact, GMX currently trades at a paltry price-to-book of 0.5. That represents a clear discount to competitors BP (1.6), Cabot Oil & Gas (2.3), and Southwestern Energy (4.4).
GMX Resources has amassed a body of assets that give it a solid competitive moat for at least the next few years. Trading at a discount to these assets which can produce long-term earnings potential, GMX Resources is a great value. Add in a decent balance sheet, solid cash flow, lots of insider buying, and bullish options sentiment, and you have a great buy.
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