Well...
What the company tells you, and what you're actually playing it for are birds of a different feather in some cases.
Everyone knows they're not compliant and cannot perform their R/S until they are.
Since they're not able to perform the final requirement of the CHAMA/HPGS agreement, the tie up remains on paper only.
I believe they'll become compliant AND they'll R/S.
The R/S is of course, probably going to be bad for anyone who buys after it and current shareholders who aren't smart enough to exit soon after the R/S.
The play here is a pending BK case with Patriot where a judge will determine if HPGS is allowed to buy Patriot wells/resources for pennies on the dollar.
Many variable exist but it comes down to this: The judge either allows it and this stock (either pre or post R/S depending on when the company becomes compliant v. when the judge decides) soars, or he doesn't. So it's 50/50 when you subtract all variables. Either he says yes, or he says no.
I believe it'll be a yes. And that's my play here.
Will insiders make out? Of course... But my current position is so well placed that I'm not worried if it's a no.
Is it a scammy stock that has ruined a lot of people's fortunes? Probably...but aren't they all and aren't they all about timing?
Here's what I believe:
The judge will say yes...and anyone who owns this stock BEFORE the judges decision with a RECENT position, will make money.
