THE BEST JULY IN 20 YEARS! THE SHORTS AND UNDER-INVESTED WILL PROPEL THIS MARKET HIGHER WITH ADDITIONAL "GREEN SHOOTS"!

VISIT OUR 10 MONTH REVIEW OF STOCK PICKS!

SEE "NEW" RECOMMENDATION- A SLEEPER OIL PLAY!
DURING AUGUST- IT IS ALL ABOUT THE ECONOMY STUPID! BETTER RESULTS MARKET GOES HIGHER- POORER RESULTS MARKET GOES LOWER! MAYBE THE GOVERNMENT COULD CLOSE FOR 3 1/2 YEARS- WE WOULD BE MUCH BETTER OFF!
AUGUST 2 2009 -STOCK ROUND UP FROM OCT 2008



STOCK PICKS 10/26/2008---07/31/2009

SYMBOL - PRICE- CURRENT P - STATUS

awrcf.ob 1.25 1.75 B

tbv 1.55 2.90 s 1/2

feed 2.58 6.09 s 1/2

evk .80 1.80 B/H sold some @ 2.40 march 29th 2009

fas 40.95 57.57 H fas did a recent 10 for 1 reverse

gbx 3.27 10.49 s 1/2

mtw 4.02 6.18 B/H

aes 6.42 12.79 H

mic 4.00 3.89 H

dow 9.53 21.17 s 1/2

aa 9.41 11.76 B/H

tso 8.89 13.09 B/H

mvco 7.55 11.50 BUYOUT

gti 6.21 13.73 B/H

stld 9.59 16.36 H

hio 3.73 5.27 B/H we have received .50/sh in div

hero 5.56 4.74 H

auy 4.03 9.49 B/H

alj 10.52 10.03 B

pdvg.pk .15 .06 H

erx 25.00 32.90 H

smtx .52 .81 H

dgtc.ob .60 .60 B heavy fund buying visit www.mffais.com

naq-wt .18 .18 H the clock is ticking and we should know within 1-2 weeks

mhco.pk 1.00 .16 B/H filed for BK- think there is value for shareholders

apt 1.58 2.79 B swine flu play- will only get worse as fall/winter approaches-they make the masks

tgx 1.29 1.25 B

fcg 12.22 14.10 B

ung 13.10 12.87 B

mbrx .48 .48 B

cll.to .83 .90 B

bexp 3.95 4.88 B

lny 8.82 8.96 B

vsr 3.65 3.91 B

ABRAXAS PETROLEUM ( AXAS) .96
THE COMPANY PRIMARILY PRODUCES OIL AND GAS FROM THE ROCKY MOUNTAIN REGION, MID- CONTINENT, PERMIAN BASIN AND THE GULF COAST REGIONS.

ONE AREA OF INTEREST THAT EXCITES US IS THE THE PROPERTY AND SHARED PRODUCTION THAT IS LOCATED IN NORTH DAKOTA. THE BAKKEN AND THREE FORKS DRILLING REGION ARE THE HOTTEST OIL AND GAS EXPLORATION AND DEVELOPMENT PLAYS IN THE LOWER 48 ( RECENT RECOMMENDATION BEXP JULY 19TH EMAIL ALERT FEATURE).

AXAS HAS 30,000 NET ACRES LOCATED IN THIS MOST VALUABLE AREA OF DRILLING.

CURRENTLY THE PARENT COMPANY AXAS IS MERGING WITH MLP ( ABRAXAS ENERGY). THE COMPANY ALREADY OWNS 48%- THE BALANCE WILL BE APPROVED BY SHAREHOLDERS AND WILL RESULT IN AXAS OWNING THE WHOLE SHOW!

THE MERGER WILL RESULT IN 26- 36 MILLION ADDITIONAL SHARES TO BE ISSUED FOR THE 52%- BALANCE--THE STOCK IS BEING KEPT DOWN IN OUR OPINION, BECAUSE AS THE PRICE STAYS NEARER TO THE $1.00 AREA THE MORE PAPER THE MLP GETS! WE ASSUME WHEN ALL IS SAID AND DONE THAT THERE WILL BE AROUND 80 MILLION SHARES OUTSTANDING ONCE THE MERGER IS COMPLETED! IN OUR OPINION, IT IS A GREAT DEAL FOR ALL PARTIES AND WILL SAVE MONEY TO BOOT.

THE COMPANY MERGED WILL PRODUCE 1600 BOEPD; OF THAT 1000 BOEPD IS HEDGED AT $80.00+/BARREL OF OIL AND OVER $8.00+/ 1000 CU FT OF GAS. THE HEDGE EXPIRES 2012. A VERY HEALTHY PAYMENT STRUCTURE FOR AXAS

IF WE ASSUME CURRENT OIL AND GAS PRICING AND TAKE INTO ACCOUNT THE ACTIVE HEDGE AND REVIEW THE 1 ST Q OF 09 AND ASSUME 80 MILLION SHARES OUTSTANDING AND LITTLE TO NO PRODUCTION INCREASES DURING THE BALANCE OF 09 WE COULD SEE REV OF THE COMBINED PARENT AND MLP OF $55 MILLION AND NET OF .30 PER DILUTED SHARES ( OF COURSE DOES NOT TAKEN INTO ACCOUNT IMPAIRMENTS, MERGER EXPENSE AND OTHER WRITE DOWNS). WE ARE ASSUMING $65-$70 OIL AND $3.50-$4.37 FOR GAS.

PLEASE TAKE A HARD LOOK AT THE INSIDER BUYING DURING THE PAST 12 MONTHS--IT HAS NOT STOPPED.. WE ARE EVEN MORE EXCITED ABOUT THE FACT THE THE GEOLOGIST OF THE COMPANY JUST KEEPS BUYING AND BUYING!

AFTER A CONVERSATION WITH MANAGEMENT IT IS OUR BELIEF THAT THE DEBT HAS BEEN EXTENDED FOR ANOTHER 3 YEARS AND AT THIS POINT NO ADDITIONAL FUNDING IS PLANNED AND THE COMPANY HAS A HEALTHY LINE OF CREDIT TO DRAW FROM AS IT DEEMS FIT!

CONCERNING THE PROPERTIES IN NORTH DAKOTA- AXAS INTENDS TO PARTICIPATE IN DRILLING ON OR AROUND EXISTING PROPERTIES.

AXAS TRADES NEAR ITS 52 WK LOW, HAS EXCELLENT PROPERTIES AND PRODUCTION IN THE LOWER 48, HEAVY INSIDER BUYING AND A GREAT HEDGE UNTIL 2012 FOR OVER 55% OF CURRENT PRODUCTION. MANAGEMENT IS EXTREMELY EXPERIENCED AND DEDICATED AND OWNS PLENTY OF PAPER !

PLEASE VISIT THEIR WEB SITE WWW.ABRAXASPETROLEUM.COM AND ALSO REVIEW THE JULY 21ST PRESS RELEASE.

WE LIKE THIS EMERGING OIL AND GAS COMPANY AT CURRENT LEVELS! SOMEWHAT SPECULATIVE IN NATURE BUT IN OUR OPINION WELL WORTH THE RISK! WE RATE AXAS WITH A STRONG BUY RATING AT .96/SH WITH HUGE UPSIDE POTENTIAL DURING THE NEXT 12 MONTHS AND BEYOND, ONCE THE MERGER IS COMPLETED IT WOULD NOT SURPRISE US IF AXAS WAS BOUGHT OUT THE M & A ACTIVITY IN THE OIL PATCH HAS BECOME FASHIONABLE RECENTLY!