To All: I spoke to Allen Burditt last week, and later, while talking to a
friend (Madly, actually) asked her why do these guys TALK like this??
To wit: I've held this stock for a long time & paid over a dollar, and watching this sickly decline over the last long months, was determined to talk to some of the managements of this & other "bombs" I hold.
Anyway, when I called him the stock was somewhere between .35 & .44. First off, he was very polite in listening to my tale of woe & my questions (generated by this board & others) about the swabbing machines breaking down, their lack of revenues etc.
He was totally upbeat. No no, the new swabbing machines were terrific, they were getting many more, they were building strong revenues, they'd increased their reserves tremendously (I believe he said 12 million barrels, but don't hold me to it; I'll tell you why in a second); they hoped to have their 10k out soon & apply for NASDAQ listing right after..."
"Don't you know you need to have a $3. stock price as one of the requirements for listing?" I asked.
No problem, he said. That's when he may have dropped the 12 million figure. And the stock was approx 40 cents at the time. And I'm thinking, what is this guy smoking? Oh yeah, the stocks gotta go up 8 fold and no problem... So I didn't take notes, I was depressed that the guy would just shovel this load at me...
And then recent events unfolded in terms of price & volume & hey; I'm a believer.
So how do you value these companies? A multiple of cash flow? Reserves per share? Anyway, I have a new found respect for Mr. Burditt. $3 no problem? Fine, I'm hanging in... -L.
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