MLV Starts Coverage on Crimson Exploration, Gives Buy Rating and $5.50 PT

In a report issued earlier today, MLV & Co announced that it is initiating coverage on Crimson Exploration Inc.

, giving the stock a Buy rating and setting a price target of $5.50. MLV went on to say in the report “Our NAV [Net Asset Value], based upon proved reserves, working capital and debt is $1.38 per share. We also consider Crimson's attractive acreage base whose 3P potential is not currently reflected in the stock price, and determine a risked NAV (RNAV) of $10.27...Over the next several months, we should see considerable data flow from these two regions from both Crimson, and peers such as Chesapeake [Energy Corporation] and Woodbine Acquisition Corp. If positive, there could be considerable upside in the shares.” Crimson Exploration Inc. closed yesterday at $4.13.