I believe Teton has a reasonable shot at getting on another exchange, but it may take a 1:2 reverse split to do so. I guess we've each expressed our (differing) opinions about this so there's not much else to talk about there.
Yes, I've sold most of my position in HNR at this point -- in the next post I will explain more about my reasoning there.
Notwithstanding the slippage last week in the TTPT price, I am still very bullish on the prospects of Teton. Based on the last insider filing it appears that they did another sweetheart financing, and the CFO, being no idiot, snapped up some shares at $.225. Hopefully in this same financing they were able to coax some major institution (e.g., a mutual fund) to put in some major money also(I'm talking 7 figures).
Once they get some institutional money in this turkey I really believe it will take off. The incontrovertible statement implied by such an event is that no major institution is gonna take a 7-figure position in an OTCBB stock unless they had done extensive DD and were satisfied with what they saw. Getting such an institution in the stock would thus have a similar effect to being listed on another exchange -- it would signify to everyone that this turkey is for real and needs to be taken seriously.
If the "cost" of getting said institution into the stock is that Howard had to give them a deal they couldn't refuse (i.e., a chance to buy in at a measly $.225 a share), so be it. More than likely it would be unregistered stock, which would mean they would be stuck holding the shares for a year. IMO this additional dilution is a very well-spent "investment" on Howard's part.
Howard is attending a hype show in Boston next weekend and is going straight from there to Russia for a coupla weeks. I would not be surprised if the main reason for his trip is to line up the next round of drilling, utilizing the funds that were likely to have been raised in this latest financing.
I truly believe the company is only about 3-4 wells away from being able to get a loan from the Organization of Petroleum Importing Countries (OPIC). OPIC was set up in response to the formation of OPEC, and one of the things it does is offer loan guarantees to startup companies that are operating in a part of the world that is out of the mainstream. They do not require a past history of positive cash flow (as a normal bank would), but merely need to see a ton of proven reserves, and also positive cash flow must be clearly visible in the near future. Once Teton gets the next 3-4 wells going they should get to positive cash flow based on a $25 Brent oil price.
This sell-off that is going on is very healthy for the stock IMO. We need these pullbacks in order to flush out the weak holders, especially if (as I believe) there is some major good news to come out. They key is that we don't want the weak holders and the flippers to get in the way of the next rally.
(The above is a post I made on the Yahoo HNR board). |
