Cashy - I don't have a position. Noticed this thing because I had an o&g thing bookmarked (Alliance AEI-cdnx) and Elect posted there. Your post mentioned "Ater doing some DD on it i believe that at this price 16c its a steal"
Please tell me what your due-dilly consists of.
I'm really not trying to be negative and am only interested in what you see and what I am missing. As indicated, I don't know the situation at all.
A quick glance at the chart (elect knows the technical stuff) did show some interesting and recent volume spikes. A look at SEDAR showed the recent news release as well as 9 month financials. The co. website also has an Apr.2000 dated company profile which contains some backgrounders re: the people parts.
The most recent financials are for 9months ended Sept. 30 and dollar amounts are stated in u.s. dollars.
Operating Revenue for the 9 months, as near as I can see, was zippo. A big zero which is also the same in both cdn. or americano currency.
Operating expenses were to the tune of just under US$1.7mil. Working Capital deficit (current assets less current liabilities) was just under US$10.3mil
What is even more significant in my opinion is the current amount of paper already issued. I never took time to detail the fully diluted number however there currently appears to be just over 58.2mil shares. There was also an allusion to future financing(s?) so the o/s number will conceivably be moving up later.
The company website contained a dec. 6 news release which also is a bit unsettling (maybe I'm missing something) in that a loan for just over US$520K has been borrowed from an entity controlled by an officer and loan terms will be determined later.....
Here's part of the quote out of the news release:
"Subsequent to September 30, 1999, BRAZILIAN issued 100,000 shares to a former director, currently serving as a consultant, upon exercise of 100,000 options at Cdn.$0.20 per share.
On October 23, 2000 BRAZILIAN borrowed US$520,921 from an entity controlled by an officer. The terms of the loan remain to be determined and are expected to be completed upon the finalization of BRAZILIAN’s next financing."
The quick glance also indicated that some options and warrants are due to expire next year so a cynical type could maybe argue that even something like fundamentals might have a hard time keeping the stiock price less than the various exercise prices. I don't know if this applies to this situation or not. It appears some exercise prices are in the range of cdn.$0.40 - $0.80 so maybe?........
Still, based on the number of share out and the potential for somemore one would have to wonder.
What do you see re: fundamentals that I am missing? Personally I'd rather take my chances on a penny oil&gas situation where things like cashflow can be watched. |
