Seeking Alpha

Genie Energy (GNE -12%) is downgraded to Neutral from Buy at R.F. Lafferty, which notes shares...

Genie Energy (GNE -12%) is downgraded to Neutral from Buy at R.F. Lafferty, which notes shares have moved 20% above its $10 target price. GNE's oil shale assets are as yet commercially unproven and many years away from turning into cash flow generating assets, if ever, the firm says; it thinks positive sentiment embracing Israel-related energy stocks has driven GNE too far too soon.
Comments (4)
  • Here's my take on GNE - I have no idea who RF Lafferty is, but I have a different view as I view the oil plays and having huge potential value that people should be willing to pay for as the potential gains are massive. Once they become known to be viable (if that happens) this stock will be multiples higher, so I doubt Lafferty will be able to change their call quickly enough after the unknown becomes known.

     

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    4 Apr 2013, 03:54 PM Reply Like
  • Sold half at 11.35 and the other half at 11.07. Purchased in the 7.50ish range. I am buying back in when the price stabilizes. I got burned with the "buy and hold" strategy too many times. Hopefully I don't miss the train, but if I do, I have a very nice profit to show.
    4 Apr 2013, 06:04 PM Reply Like
  • Couldn't agree more, but think in the very near term GNE comes back to the mid 8 dollar range. I believe that they should be getting some oil from their pilot project within a few months, and if there isn't any negative news the stock will likely rapidly appreciate - market cap is only about 200M, and quite frankly there isn't much of a premium built into the stock at all. There is risk, sure, but waiting for everybody else to get on board is a sucker's game.
    24 Apr 2013, 11:41 AM Reply Like
  • Here is my take on GNE: I also have no idea of who RF Lafferty is , but I know Lafferty will miss the boat on GNE!
    Forest Gump comes into play here:
    "Forrest Gump is a simple man with a low I.Q. but good intentions" so is RF Laff-eerty.
    Who would follow Forest in the real world?;0)
    8 Apr 2013, 03:12 AM Reply Like
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