Jim,
I have to agree. Tracer finally has a property that is theirs if they deem it desirable. I don't think they would have put up $60,000, if they didn't have a good idea that they want it. The problem is that they have to raise money to get the property. And without a Nasdaq listing, that would probably be very difficult. I don't like reverses either, but if the things they are doing come to pass, the stock would probably go around a dollar, and that would equal $10 with the split. This would allow for a National Listing, and would bring the institutions and a lot of attention to the stock. It would move up very quickly considering the small float. I agree that a lot of splits don't work out, but this is mostly companies either with nothing in the pipeline or facing bankruptcy. Tracer seems to finally be facing a situation where they can start to grow. If they get this property, they will have instant revenue, which can be used to explore the NT Block, which is the prize anyway. Also, they is room to develop these blocks, something that Jacobs did quite well in the OK Block. When he took that over it was a difficult situation. The block was producing 4000 bopd, and was in decline. He increased production to 20,000 bopd, so he has the skills we need. Imagine the revenue and the exploration money, raised if these new blocks produce 5,000 bopd. I understand they also have other opportunities they are evaluating. With a property or two, I think I will be able to live with the reverse split.
Pete |
