Yes, Durro, the classic accusation posted by the faceless newbie, who claims to be a frustrated long to help bolster their credibility. This story gets played out all over SI and other boards.
Does anyone think the LPS folks are happy with the cancellation of shares? What about our old friend who had many shares cancelled on him? There are enough candidates to take over the bashing roles and what a perfect time. Stock is depressed. Every news release of projected events seems to be followed by unexpected delays.
Even trusting longs have doubts. Doubts are fine. I'm taking time next week to see if I can verify that it is indeed difficult to locate an oil rig because I am not buying the excuse. A perfect climate for those who want to grow mushrooms, right? Keep them in the dark and feed them lots of manure. But even my doubts doesn't mean I believe this new round of insinuations.
Worrying about real problems has been enough to drive the stock down. Comes now these new "friends" to instill ridiculous fears. How predictable.
We are in the twenties now because some big shareholders dumped and their selling begat further selling. But let's try and look at this company objectively(good and bad):
The bad( I like to get that out of the way):
1. We have 18 mm shares now compared to 13 mm last fall.
2. The company is still not a reporting entity...yet.
3. We have no real revenues from Envirotec...yet.
4. LPS is dead.
5. The Texas oil/gas operations are essentially dormant.
Now, let's look at the good:
1. We have a tentative merger agreement with a reporting company that only needs SEC/NASD blessing and proxy rubber stamping by us shareholders.
2. While LPS was cancelled, it reduced shares from 25 to 18 million.
3. Envirotec has been approved and a reasonably defined set of requirements that are achievable is all that is keeping the company from starting to process Class V.(pour a concrete pad above ground, pour a concrete plug underground, and cap nearby wells when production exceeds 7500 bbls/day)
4. AdHatters is expanding and growing at a healthy clip.
5. Any level of short selling must stop and immediately cover upon the symbol/name change.
The stock is trading at prices lower than most of 1997(except during the heavy short selling of September and October). While there are 50% more shares out now than then, we have far more potential now than then. It is still blurry and clearly the company has cash problems, but the revenue potential is there
In hindsight, not selling last fall has been shown to be a mistake. But I still believe that selling now is an even bigger one. The bashing is indicative of a turnaround coming. The price may get weaker before that turnaround, but I am not willing to gamble on that by selling all now. But I will be there buying if it gets hammered into the ground.
TG |
