Dear Brady, I managed to speak with my contact today.
The big H is holding 975,000 shares. The float is roughly 22 million outstanding, which puts him at roughly 4% of the issue. His big love for the stock is based on the "follow the money" principle. He knows of some heavy hitters who are major stockholders, including former head of Caterpillar, Thomson formerly of Nesbitt/Thomson, and a few other big shots all who have substantial long positions.
He was unable to confirm any news or developments although he confessed the stock will need something to sustain serious momentum and attract new buyers. No one, he is convinced is selling any serious amount of stock. The corporate strategy is to find and develop prospects and then sell out to a major or junior oil producer with a 30% interest in the development. This is why the company is cash rich with no debt load. He is very high on it and teased me that this could be his personal Bre-x. Obviously not tallking of $100 figures but he did call Broulan, Nufort, Place Resources, Excel Energy, all except Nufort were oil and gas, and in the cases of Broulan and Excel both went to $10. He is confident that Tiverton is good for at least a buck, if not more.
I told him I increased my position and his response was: " Good, but you should buy more."
Personally, I'll become a better believer when:
(a) I hear some news/developments like purchase of new property, drill results, joint venture agreements, or the sweetest of all - a buyout.
(b) volume must sustain itself with price increases of small increments, too fast up can have nasty surprises.
Until volume proves itself reliable, difficult to recommend serious purchases because the stock is not liquid enough.
Regards, and thanks for the kind words of confidence. |
