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June 6th, 2008

SpeculatingStocks.com Stock Pick: CKX Lands, Inc. (CKX)

Stock Price: $13.66

CKX Lands, Inc. engages in the ownership and management of land and mineral interests located in Southwest Louisiana. The company's activities consist of leasing its properties for oil and gas and agriculture, as well as raising timber.

CKX has grown revenue the last three years from $2.65 million in 2005 to $2.69 million in 2006 to $3.25 million in 2007. The company produced net income last year of $2.83 million and operating cash flow of $1.82 million.

We believe CKX will benefit from rising oil and gas prices. The company is well positioned to exploit new oil/gas fields and wells. CKX had cash, cash equivalents and short term investments of $6.27 million on their balance sheet as of their latest quarter. CKX doesn't have any long-term debt.

CKX recently jumped from the $13.00 level to close to $24.00. CKX moves very quickly with a float of only 1.52 million.

 

 

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