EGXP is still selling (last trade: $.15) at a huge discount to its net tangible book value of $.61 per share. However, the Joeckel's have been in control of the company since 1979 and they continue to invest the company's cash in real estate and oil and gas properties, not always with he best of results. Hard to figure out what they want to do with the company. Have you had any recent conversations with them?
From the most recent 10-Q:
sec.gov
Stockholders' equity decreased from $2,483,877 at March 31, 2001 to $1,887,035 at
September 30, 2001 or $596,842. An increase in unrealized loss on investments
available-for-sale for the period ended September 30, 2001 was $572,170, and the net
operating loss was $24,672.
The unrealized loss on investments available-for-sale increased significantly for the
period ended September 30, 2001. This is primarily due to two investments. The Company
invested approximately $450,000 in four companies involved in drilling and developing a gas
prospect near Bakersfield, California. The current fair market value at September 30, 2001
was $128,645 a decrease of approximately 71.5 percent. This decrease in value is a result
of the decrease in the price of gas and the result of mechanical problems encountered in
completing the last two wells drilled on the structure. Currently, two new wells are
drilling on the structure, and a new 3D seismic has recently been completed and is under
evaluation. It is management's opinion that a large quantity of gas and hydrocarbons is in
place under this structure. The question that remains is can this exploration effort
economically produce gas and hydrocarbons.
The other investment that significantly impacted the unrealized loss on investments
available-for-sale is the Company's investment in a telecommunication company. The Company
acquired bonds in the amount of $352,600. For the period ended September 30, 2001, the
value was $41,800. Market conditions in that sector have restricted that company's ability
to finance its growth, and as a result the probability of this investment to turn around is
uncertain. |
