Tim, to answer your questions as best as I can:
First, there is one analyst's report out there with a strong buy. However, it is a boutique, one man shop, with not a lot of following. However, his clients were the ones who ran the stock up in December from $10 to $19. They pretty much sucked out any major supply of the stock in that price range. I just talked to the company to find out who did the private placement and there were three brokerage firms: Stephens (naturally), Morgan Keegan (small U.S. firm with very good oil and gas analysts and a great fall conference), and First Energy (excellent up in Canada.) These companies have had their eye on PSFD for a while, but as of yet have not had the courage to stick their ass on the line and talk about it. My guess is they won't until drill results. No one wants to look stupid with the Holy Grail.
Second, the rights to use the SFD to find minerals is not with Pinnacle. The inventor of the SFD and his partner kept those in Momentum (the company that licensed the SFD for oil and gas to Pinnacle.) They will, over time, exploit the SFD for minerals themselves. Nothing for us unfortunately.
Third, definitely not a satellite imaging thing. This is a "passive" sensor while satellite, radar, etc. is not passive. Again, all I can say is that he tells me it is not electromagnetic, gravity, etc. That he is measuring something on a subatomic level that is emitting a field that no one has ever measured before. I believe you are right when you mention mechanical stress waves. What he says is that rocks under stress (in this case a non-porous structural trap being stressed by the oil and gas or water under it trying to reach surface level) emit some field that he picked up with his sensor. I think he fully expects to someday win the Swedish prize, but first he wants to become a billionaire, then the fame. Until the billions come in, he won't disclose how it works or what he measures for anyone, including the Nobel people.
Finally, no one can audit what he is measuring or what he is doing whether it is the SEC or Coopers (their accountant.) All that can be measured is the results. Nasdaq is obviously interested in the revenues that flow from the interests they are given in the fields they find.
Read Dan Topolinski's words in the press release today: "In addressing his and Mr. Ehrets' employment, Mr. Topolinsky noted ''During the course of the past two years in which Pinnacle has operated the technology over Renaissance's and CamWest's exploration areas, the coincidence of SFD features with known seismically-identifiable subsurface structures and proven oil and gas pools has been extraordinary. Pinnacle's capabilities to acquire, process and interpret data have improved significantly, with the time between survey and prospect delivery having been significantly reduced. Both Jim and I believe that these capabilities will posture Pinnacle to attain its goal of becoming a leading exploration company over the next several years, and we are both excited as professional geologists in becoming part of the Pinnacle team.''
I loved the post Friday on Shoal Point having rumored to be a big success on the Candian Oil and Gas board by Richard. Pinnacle is the Shoal Point sleeper play that will make everything else look like chump change over time.
-Dilution |
