American Resources of Deleware (GASS) Message Board

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Gold/Mining/Energy : American Resources of Deleware (GASS)

GASS 7.960

+2.7%

Feb 6 9:30 AM EST

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To: tony mendoza who wrote (54)	4/20/1997 11:41:00 PM
From: Ed Ajootian	of 172

Tony, I am about to give up too. I gave this a lot of thought and this is going to be one of my shorter "buy" recommendations but based on this recent event I must lower the stock to "hold". It is not so bad that they are doing another placement (they had said earlier that they were going to need more money) but the bad part is that the earlier placement isn't flushed through the market yet. There is still about $2.8 mill. of convertible bonds not converted. So that means they will be added to the new offering. I don't know what Reg. letter is applicable here. I vaguely remember talk about some proposed rule changes in this area. IMO management cares about its shareholders but has just backed itself into a corner by buying far too much O&G properties than they could afford and then thinking they would be able to raise the money after the fact. The moral of the story is that you should never bite off more than you can chew. If you are out there hanging, all the legit financing sources won't give you the time of day. That just leaves you to deal with the sharks. And, as we have seen with this sorry stock, the sharks that deal with these kinds of private placements will eat you alive. It is ironic that the very firm that GASS paid over half a million $$ to bring the stock price _up is telling folks this bad news, causing the stock price to go down. There will not likely be a news release on this latest offering, just as there was no release on the earlier offering. We will likely first hear of it officially when they file their 1st quarter 10QSB on 5/15. I am gambling that no news on this will come out until then and therefore am holding until they announce 1st quarter. Maybe we will see a dead cat bounce then and I can get out at somewhat higher prices than the present. Sorry this couldn't have had a happier ending. If you are looking for O&G microcaps another company that is in much better financial shape than GASS and is doing some great things is Midland Resources. Search for MRIX and you will find the thread here.

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