Hi Larry. I find it mystifying that Oilex continues to announce new acquisitions when they should be concentrating on producing oil (money!) from existing properties. Using the Australian royalty purchase as an example, did they conduct a thorough due diligence before this purchase? Did a qualified oil and gas geologist travel to the site in Australia to verify the potential of the acreage? I am sure that such a due diligence would have been costly. If it was done, couldn't the money have been better used to produce oil/gas from presently existing properties such as the Big Foot example? On the other hand, if a thorough due diligence was not conducted, what in the world (pardon the pun) are they doing investing in something about which they know nothing? Or could this be another case of a company attempting to artificially raise the price of its stock by issuing press releases that sound intriguing but have very little substance? This thought leads me to the next point. I have been unable to discover any current SEC rule 144 filings by insiders. I would not like to think that I am buying stock that an insider is dumping on the market whenever they can find a buyer. From reading the recent SEC filings, it is apparent that some insiders have a cost basis of a fraction of a cent per share so that a sale, at say $.40 per share, would constitute an enormous return on their investment. Since insider transactions are based on self-reporting by the individual, how reliable is the information (or lack thereof) to which we do have access? I am not saying that any of the aformentioned possibilities/questions are, in fact, the case. I honestly do not know. I do think that such knowledge is essential in sound investing decisions. I would greatly appreciate any information anyone out there can give me.
Prude |
