Hello bob: I'm not sure when you came on board, but back in March or April, there was much discussion of the theoretical viability of the EMSounder. Several individuals who should know, expressed extreme skepticism. David Moon of Queensland University was one. Zeev Hed, who has a PhD in physics, also had reservations about its purported capabilities. Mike Currie has recently and also in the past warned us not to jump to conclusions should oil be found. There is not enough data to establish a statistical probability and the more the company uses the EMSounder with traditional methods, the less definitive the final answer will be.
The major critique was that the sensitivy that was required to get readings with the sensitivity and depth as claimed by the EMSounder was an order of magnitude greater than what is considered possible today. In layman's term, GPR works well down to a hundred feet or so. Claims of accurate readings deeper than a mile really raised a lot of skeptical eyebrows.
To me this has always been a technology investment. Prove that the technology works and the stock will rise. To the people who control this company, it is apparent that the technology is not as important as the potential revenues from mineral exploration. IMO, they are downplaying the effectiveness of the technology and they are positioning this company as a junior exploration company, thus the intrigues and management reshuffling that we have seen over the past two months.
Clearly mineral exploration is where the money is. Just as clearly, it is where the potential for scamming investors is the greatest. That is why anyone who owns shares in this company had better own them knowing that there is a very high degreee of risk.
The risk factors for this company are the highest for any company I have invested in. It is a high risk technology company and a high risk mineral exploration. Conversely, the reward potential is equally high. If the technology works, it could save mineral exploration companies millions of dollars. And if they hit a few decent sized reservoirs, they could make hundreds of millions of dollars. How you balance the risk/reward factors will determine how you assess this stock. Tony West has opted out probably taking a loss and claiming it is a scam. Zeev sees a death spiral caused by stock manipulation. I see us bottoming out at our current level with the potential for some good news and share appreciation over the next three months. Boy, I hope I'm right for a change...
marty |
