SwingTrade Member Forum

[ronpopeil]

MOSH could be a huge winner Rawnoc. It is a trust so settlement or jury award would go straight to the unit holders. Therefore, if there is a settlement or jury award of $500 million (which i believe is on the very low side), that would equal to $7/unit because there are 70 million shares. Normally the company receives it and they decide where it does (maybe issue a dividend to shareholders, pay company expenses, buy back it's stock etc).

This case is very strong. When i first heard about it i thought people were just pumping and dumping but i decided to read up on it. I could not believe how legit this really is.

Here is a little background:

PXD was MOSH's managing partner. MOSH was actually created by T Boone Pickens. Anyway, MOSH & PXD had a 50% interest in Brazos. Allegedly, PXD discovered that Brazos had well over $1 billion+ worth of Natural gas. They decided to quietly terminate the trust and farm out MOSH's interest to Woodside who would help PXD develop the property. The only problem is that they farmed out our interest before the trust officially terminated and Woodside let the cat out of the bag by announcing a huge find. When word of this spread to MOSH unitholders, a lawsuit was filed. MOSH had experts value the property which confirms its value over well over $1 billion. This was based on NG prices at $5. They are now over $7.

The case was started a few years ago and December 8th is the trial. PXD, Woodside and JP Morgan are being sued for $1.2 billion plus punitive damages and other damages which could be worth more than the $1.2 billion. JP Morgan is being sued because they are the trustee for MOSH. MOSH is a trust which is why we have a trustee. The trustee was Mike Ulrich who not only was asleep at the wheel but also assisted in this illegal farmout and termination attempt. He broke every rule as it applies to a fiduciary and we even have as one of our expert witnesses, a former judge from the county where this case is being held to testify that he did so.

To date, we have won every court battle. The defendants summary judgment motions were denied. Their motion to implement a stay due to their current appeal of the summary judgment motion decision was denied. Their motion to delay the trial was denied. Their motion to compel MOSH to properly designate expert witnesses was denied. Just the other day, the defendants appeal on the trial courts summary judgment motion was denied by the court of appeals. That was a huge win because a higher even realizes what is going on and ruled in our favor.

The defendants had until the end of september to fork over discovery but they refuse to hand over any internal memos, seismic reports and data as it pertains to Brazos etc. I wonder why LOL.

This could be the mother of all cases imo. I believe a settlement with at least one of the defendants will happen soon.

Let's say the over all case settles for (or damages awarded) are only $300 million (which is much, much too low imo), each unit holder would receive roughly $4/unit. We are trading around .30 so you can do the math. Moreover, let's say we get our interest back in Brazos and the trust continues, we will not only get $4/share (using that $300 million settlement example) but we could keep our units and partake in the royalty income from a property worth over $1 billion. Surely our units would be worth a lot more, let's say $5-$10 each. If you sold, you would not only college the $4/unit from the lawsuit but the $5-$10/unit from them just going up from the property.

Fwiw, some "in the know" have speculated that if this goes to trial and the jury hears what these companies tried to do to the little guy, it could be worth billions, perhaps $3 billion. That equate to $40/unit. We are asking for $1.2 billion plus punitive damages and other damages (such as treble). If awarded, we could see billions in damages.

Imo, why now throw a few dollars at it and see what happens. We are approaching the later innings since the trial date is around the corner and the possibility of a large settlement with one or more of the defendants becomes a real possibility. Time is ticking for those who want in.