This one has refused to participate as the overall market rallied due to gains in the price of oil. The biggies and advanced spec plays like ELH have all gone up,...but a few small and growing producers, like this one, have languished.
This one ain't got no respect from the market yet! The only way to get respect is to get more production and generate higher income. I don't know enough about the new land position they acquired, to know how prospective it is. I thought the management was a good team, and I thought they were good at increasing efficiencies of production and cutting costs,...too early in the companies history to tell yet I guess. Good income is being hidden by high depreciation costs,..at least taxes are low thanks to that. We are in company building mode, be a couple of years before the dust settles enough to tell what's going on.
Pre split, we would be at $.10 now. It's not hard for a stock to go from $.10 to $.30 It is harder to go from $1.00 to $3.00 I assume they are about to look for some PP money to do the drilling required in the new and old properties. So now we must ask, is management good at exploiting a producing field?,...a new field?,....are they lucky?
Isn't it more fun playing ELH? At least for the next few months.
Still holding a few, just in case they get lucky, but they cost me quite a bit more than I should have paid.
cheers |
