Hi, Bob,
Good to hear from you. I don't agree I was too hard on Scamrock.. they are major screw-ups who don't give a fart in the wind whether or not the stock goes toes up as long as they drill, and they've said as much (at least it's been reported that way to me by a few brokers who ought to know).
I don't think they can do that, and cash in at the top. If I buy to invest in a company that even considers that, I'd rather have a piece of the company - not some shares that can jump to $4., or sink to .45.
They've proven that when it's important for them to get more money, the share price can move, like any company doing a private placement or releasing 'bank' shares.
But buying shares in SHJ is like paying $100 for something that costs $10 and being told don't worry, sooner rather than later these shares will be trading in a minimal range and just when they've almost turned to dust, you'll have the satisfaction of knowing that very soon (it's always very soon.. has been for the last 3-4 years) they'll be as valuable as forgotten antiques.
Don't you think if those shares represented a real piece of the company and they could be redeemed that a rush of withdrawals upon such completely slack behavior might up the ante on such slackers being more competitive and progressive, or have their reps be more completely forthright in inducing people to buy shares (you know, like 'this could take years.. we went to drill a year ago and didn't arrange to have the right equipment so we had to have it sent by highway, that took a few weeks and we lost our drill time by having it reduced to an entry point')
I don't hear or see of any company on any exchange asking people to invest and telling them the price could sink 100, 200, 300% below your purchase price..for years, and there's nothing we can do or will do about it. If it was truly an investment the price would be at a level where anyone could get in, and get out after a certain period, with interest.
Do you think they have such factors in place? And if so, who has the claim on such bonds? And if they don't, why not? Or do you believe the shareholders who bought in on private placements at 1.56 or 1.62 are sitting there thinking well, I like this, months of no return (which amounts to zero minus) and more delays.
I think there is oil, from everything I've read and heard. But corruption isn't necessarily active, it can result from ignorance, omission, etc. And they've done nothing else except hit some oil which would take 75 years to pump out at the rate they're doing it.
And since this is a speculative play I think we should know more about the principals. The President of Scamrock, and the other players like Templar.. but they don't publicize that in their infrequent press releases.
If the shamrock grows, it'll be because it's been fed liberal bullsh#*t.
If you haven't been involved with this play for more than year, wait. If they don't hit it this summer, see how you feel later in the year, especially if you hear the same old excuses. If they do hit, great.
But if they don't, then what? Another year.. or two.. or three, or...?
I think that since they're in California, and they have probably all the brokers they talk with whispering about close to or over $100/share that any real hint of such a possibility would attract investors from California, big time money men, and none of the deceits that continue to come from there would be seen as anything but camouflage for an inability to do the job.
That incident with the proper equipment happened. Where, except in a delusionary teenager, would you hear of such a load? Just about to drill, been years in the making, and.. oops.. not the right equipment.
And it wasn't extraordinary equipment - it was the usual and the necessary.
I like to think that you or I being on the verge of uncovering what may be the balance of the California oil just might remember the right equipment. And if we didn't and had years to do so, what the hell would it say about us, our business sense, our likelihood of success?
Diddly.
Hopefully the other companies are different.
K. |
