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    Rex: Why This $11 Energy Concern Is Headed To $15

    Wed, 05/02/2012 - 09:36 EDT - Seeking Alpha
    • Bret Jensen
    • REXX

    By Bret Jensen:As regular readers of this column know, I am a big advocate of small energy producers in the shale regions of North America. I believe we are in the first couple of innings of an oil & gas revolution driven by fracking technology. I also believe there will continue to be an increasing amount of M&A activity as the majors find it easier to buy reserves on Wall Street than finding them in the field. I first wrote about Rex Energy (REXX) back in the middle part of March when it was selling around $10 a share. The company just released earnings and gave production and other guidance on Tuesday. Although earnings were a bit disappointing, the production update and guidance should provide numerous positive catalysts for the stock.Catalysts/Positives for REXX:

    • It exceeded it high case guidance for the quarter by 1% and now expects 67MMcfe - 72MMcfe/d for

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      By Bret Jensen:Regular readers of my columns know I that I love to troll for busted IPO's. I love stocks that came public with great stories but have lost the interest of investors and have gone through their insider lock up periods. I especially like when I can get these shares 50% to 75% cheaper than their initial IPO price if the positive story on the company remains intact.

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      By ValueMax:Based on my analysis, Chevron (CVX) is the best-balanced U.S.-based energy producer, with approximately 25% of its production and proved reserves in each of the four world regions (North America, Africa and Latin America, Asia-Pacific, and Europe-Eurasia-Middle East).

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