Crabbe: Thanks for the info on these companies. I am brand new to Ethanol investing. I purchased XTHN a couple of weeks ago, along with VRDM and INSQ. My brother purchased EBOF about a month ago when it traded around $.60-.70, but I got caught watching from the sidelines. :-)
I like VRDM, but to be honest, I am a skeptical investor. I’ve read so many posts on numerous boards that say this company is a “pump and dump” stock. I looked through their most recent annual report and couldn’t find the word Ethanol mentioned anywhere. Also, several of their PRs do not include the names of the company that they’ve partnered with, which makes me nervous. I like the idea of investing in this company if it can produce $25-$50 million in revenues, but I’m scared that I’m being fooled.
On the flip side, I’ve seen other posts that say VRDM has 5 or 6 other contracts that they’ll be announcing soon. I’ve seen where some connect INSQ to VeraSun and that the connections will be made in the upcoming IPO. I’ve also seen where others have claimed to talk with VRDM’s management and that they are pleased with their plans.
I like your posts because they give VRDM some validity; however, I’m still skeptical.
So my questions for you are: How can I boost my confidence in VRDM? Is there a way to prove to myself and others that this isn’t another “pump and dump” company? Is there a way to find out if companies are actually using VRDM’s technology and if they are having success? You seem to be very confident in this company, so any insight or advice would be greatly appreciated.
I know I keep asking you questions, so here is my contribution to this board:
I've also been accumulating NDOL.PK over the past week. I’ve been buying shares in the $.40-$.43 range. According to what I've read, NDOL is moving from .PK to .OB in the next week or two and it is considering a buyout offer. If you trade on news, early next week may be the week to buy as management hopes to have announcements for both before May 1.
Value estimates that I’ve seen range anywhere from $1.00-3.50 per share. Before the buyout offer was announced, the CEO said he thinks the PPS should be at least $2.
It recently started trading on the Frankfurt exchange.
NDOL recently received approval to start producing oil beginning June 1. According to their press release:
“The production is expected to yield approximately 6,500 barrels per day or 2.3 million barrels of oil for the following 12 months, representing revenues of approximately $150 million USD and when we add this revenue to our existing transport, storage and trading business, total revenues should reach close to $200 million USD by June 2007”
They also operate a transport, storage and trading business. Management expects this business to double this year from ~$19 million To ~$50 million.
With the cost of oil rising, I’m actually hoping that they don’t sell, because I think there is long-term value for both the company and its investors. This company appears to be way undervalued and I'm hoping that it's just because they have .PK after their name.
The risks with this company include the fact that they carry the .PK extension, they may have received an offer lower than their current stock price, they may be fooling the public and they were recently trading below $.10 a share.
Anyway, do your DD, but you may want to give NDOL a look.
Thanks for any info on VRDM that you can provide. |
