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Comstock Resources Inc T.CRK.DB


Primary Symbol: CRK

Comstock Resources, Inc. is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates through the exploration and production of North American oil and natural gas segment. The Company primarily operates in the Haynesville shale, a natural gas basin located in North Louisiana and East Texas, with economic and geographical proximity to the Gulf Coast markets. The Company is focused on the development of drilling opportunities in the Haynesville and Bossier shales and exploration activities in Western Haynesville play. The Company has approximately 2,959 drilling locations on its Haynesville/Bossier shale acreage, where the Company estimates to have 4.9 trillion cubic feet equivalent (TCFE) of reserve potential. The Company owns interests in approximately 2,478 producing oil and natural gas wells (1,516.7 net) and operates 1,703 of these wells.


NYSE:CRK - Post by User

Comment by December3on Feb 09, 2012 12:38am
313 Views
Post# 19507595

RE: RE: Going Forward

RE: RE: Going Forward

bonjovi - I am not a sooth-sayer or prognosticator of share price so I am usually terrible at predicting exact peaks in share price.  I think only  the VERY lucky or the liars ever sell at the absolute top price.  Though play the game long enough and sometimes one gets lucky! 

I have had a few times when I took profits selling into a run up and got close to the top, but that was a time when "conventional BB wisdom" was that the share price was going much higher.  So my best advice to you, is to decide or pick a target price for your shares BEFORE you buy the stock.  Also write down the reasons why you think the share price will get to that level,  Keep it in a journal or loose-leaf notebook. 

Then as time goes by periodically sit down and review what is happening with the company: are they hitting the performance targets you thought they would?  are the reasons you thought the price would go up still valid?  If the reasons you thought would move the shares has disappeared, then why hang on? Is it time to sell?  It takes a lot of work to invest your own money in the markets and bring home nice rewards.  Oh sure there may be a few on BBs who claim it is easy....

.

As far as CRK goes....a crude but easy method is to look at similar companies (with the same production as CRK targets) and look at their Market Cap per ounce of production. Get an average or range for this level of production and use it to work backwards from the number of CRK shares to get a target or target range. [This is the approach paid newsletter writer John Doody, Gold Stock Analyst, uses.]  Others might suggest some multiple of cash flow, sales or free cash flow. I think those are less applicable to new start up mines than established miners. I'd only use a ratio that was applicable to recent sales of an average of similar sized and development stage juniors.

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Another approach could use the number of ounces of "gold in the ground."  This is what most BB posters focus on and most make a silly mistake of assuming the Market Cap of the company should be equal to "ounces in the ground" times the current POG!  No one in their right mind would pay $1600 per ounce for "gold in the ground!"  The true value of something, no matter what the owner thinks it is worth and no matter its "potential" - the value is what some arms length buyer is willing to pay!  So don't fall into the trap of "gold in the ground" times price of gold!

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