Still think it will not go below ten?

Buy after the next private placement. Based on cash-on-hand burn I expect it in the next month. My guess is that management is trying to hold off until they get something from FDA, but that ain't gonna happen anytime soon (my opinion only, no factual basis to support that assertion).

So, hold until the next big drop to the single digits, probably some time in September, and then buy.

That is my plan.

I am guessing this is over. I lost about $20,000 on this venture. of course, that is not what I initially invested, which was more like $5K, but I did not sell the day before the California shareholders meeting like I should have.

In any case. To those about to lose your investment, I salute you ...

It was an exciting run. Perhaps someone will write a book (and recoup some of their loses). Until that happens, to all of you who either thought this company could make it, or tried to help it along the way, thanks. In the end the bastards beat us. But you gave it a hell of a try.

Thanks

The "drilling fund" will be a dilution of $25 Million in shares, and the number of shares you can get for $25 Million keeps going up. I am out of this for now until someone clarifies the filings - are they really planning on diluting to the tune of more than twice the current company value? How about the reverse split? The share price will not stabilize until these two issues get fleshed out.
BTW, when was the last time management purchased a share on the open market?

Don't get me wrong, I am bullish on their holdings, I am less so on how management seems to want to fund their development.


JMHO

Just curious, lets suppose there is not a partner coming in and DEJ is planning on selling the shares to retail investors. What will $25M buy them in drilling? I am guessing four wells, but I don't have the background to make an educated guess.

I played with the idea that they were looking to bring in a partner who would take all the $25,000,000 in shares. It was interesting that the form 3 mentioned the amount of the offering rather than the number of shares. That is what made me think that partnering might be what is on the horizon. This would provide them money to drill. If the shares are restricted then it would not change the float and might not hurt the SP too much. If they broke even this quarter and they had a partner with cash, it might be why they are looking to toot their horn at the investor's forum. But their track record would not indicate anything this positive.

I will wait to see if that is the game plan. Today I dumped all but 5K to keep as a placeholder. Jumped into Shipping with FREE at .39. Lets see how bad I get screwed there

I can't figure out the play here. They are less than ten trading days away from presenting to an investor's forum and they do this. I don't see why anyone would invest considering the company's history of dilution and total disregard for investors. I dumped 1/3 of my holdings today. Luckily my basis was only .198. I will buy back after I see what the plan is.

So now they are looking to double the number of shares outstanding. Did not expect dilution at such a low price point. Hope they don't pull the reverse split and then offer the $25,000,000 in shares for sale. That could effectively bring the SP down to 6 or 7 cents.

And yet no one seems to be exercising them. Shows great confidence, or they do not plan on making their money from the stock value.

Besides, it is not these options they need to worry about. They need to get the other options exercised so that they can get some cash (or clear some debt).

The value of this company will go up with time but management seems to always be more interested in their cut and their ever expanding empire of managers. Their willingness to dilute, the reverse split vote that made no sense at the share price the stock was at (10:1 made more sense if they were really looking for institutional investors instead of simply diluting again) all point to using the stock as a source of working capital for the company and not as a place to reap the rewards of their efforts (and our investments). I will stand by my estimate of $ .36 in twelve (ten) months; maybe not that much if they pull the reverse split. I would really love to be wrong (on the low side). Maybe something will come when they present in November, but I am expecting more of the same. I am not being a pessimist, just a realist.

Blame Yahoo, not me. They are the source of the 2.34% ... and that is ALL insiders, not just Hodgkinson and Blacker. (http://finance.yahoo.com/q/ks?s=DEJ+Key+Statistics). They cite Edgar.

Even if collectively they owns 5%, that is not much. If I were looking to sell I would want to be holding about 25%. So unless he has a ton of options waiting to execute, he plans on making his money with in income from the company or in a sweetheart deal he gets as part of the buyout. In either case, the shareholders do not share in either one of those plans.

Sorry, just call it like I see it.

I know I went rounds with someone on this before, but insiders own 2% of the shares (According to Yahoo), so I don't see anyone on the inside setting this up for sale. This is Hodgkinson's and Blakers retirement fund. They will draw pay on this one based on minimal production until they die.I have seen comments that management has said on numerous occasions that they do not care about the share price. That is because they don't own any shares. They care about income they can draw on the assets. Minimal production over the long haul.

I will hold on to what I have based on the outside chance that someone revalues the assets and the company gets some visibility, and the share price goes up despite management, but I don't see any signs indicating that management is setting this up for a sale.

Thoughts on 3QT? Break even would be nice, but not anticipating it. 4th QTR may be a break even if they do not add too much overhead to the company. While others feel that this is a company built to sell to the highest bidder, I think this is a company built to provide reliable income to the management and their cronies
.

Flipping requires far more of my time than I am interested in. I picked this stock because it looked like it had decent assets and was about to round a corner. I am upset because some of the stocks I have passed on have done better in my normal 12-24 month hold period (I haven't been in DEJ for five months or so - switched from HDY before it did its reverse split). I have considered getting out but I think my timeline for a 100% return is still realistic.

That said, I am kicking myself today because FREE was another stock I passed on for this one. It was below .25 when I looked at it. So I am kinda testy today. But FREE is shipping and that was jumping sectors, so I left it alone. Whoa is me.

I guess I am saying that it is safe to be optimistic, but not unrealistic. I wish I knew where the leadership of this company was headed. I have not seen any news release that says that the company is positioning itself for sale, only that it is attempting to prove the value of the assets and to increase production. From that I can guess that revenue (and eventually profit) is the short term goal. Beyond that, I would be foolish to assume more.

Now, I believe the company is undervalued, and will buy under .19 (which I just did), but I am looking at an investment that will yeild a return in 2015, not next quarter.

I know that is the talk but I am not seeing action based on that assessment. It is always based on what others might do, not on what we are doing to make it happen. What I see is a company that has over-extended itself and is now being conservative. That is a good thing. But they are also not securing new permits (from what I can tell) and are content to work with a limited number of wells that will produce sufficient revenue to pay the bills and management.

Does that preclude a buy-out ... no. But it also does not look like they are working to increase the value of the holdings in order to entice an offer. They are working to increase production, not relative value of the package. At least that is what I see.

For a shareholder that means that we are looking at 2015 or so before there is any real movement in the share price because that is the amount of time needed to do everything. The good news is that, with steady revenue, there is no reason to dilute. It just means that return on investment is two years out.

I guess I am just not seeing it. They have the assets but don't seem to be doing anything to position themselves to sell the company. It looks like they are after a small, but consistent revenue stream.

Pretty pathetic that, even with good news, it can't hold any value.

Before I speculate, I will simply ask: for every $100.00 gross Dejour gets from the sale of NG at the four new wells, what is their net return. I understand there are royalties to the federal and state governments, the percent the drilling partner gets, and operating expenses. I seem to remember their share at this point in the game was about 15% less royalties and operating, which equates to about $10.00 on the $100.00. Is that right?

I was hoping that my information was wrong. 7.2M is a little better. Still not huge. If he is looking to retire I would think he would want a bigger piece of the pie unless he plans to get it as part of the sale.


It also makes more sense to sell the company en masse to a larger company rather than sell the property separately because that type of merger offers opportunities for some of the other principles who are not big holders to move over to the new firm.

However, I would still like to see some insider buying. It might provide the boost needed to get the SP over 25 cents.

Again, I am not bashing, but I do like to be realistic.

If that were true there would be much more insider ownership. I think Hodginson owns about 3.4 million shares. He is not going to retire on this stock if it goes to $1.5 a share. I don't even see that Blackner (CEO) and Bretzloff (Executive Council) even own shares. This does not look like it is being set up for sale.

I would like to see some insider buying. I don't remember ever seeing a form 8. Plus there are a lot of unknowns. There is a reverse split on the table (voted for not that long back) and management has a tendency to pay themselves handsomely and ensure they get that pay with the assistance of equity offerings.

Don't get me wrong, I like the company and I own shares. This news acts as proof that the have some good property (for now). But before you go in big I think about waiting until they release this quarters earnings. My guess is that they will reflect a loss. That could push the price back down. Now, if they add a conference call, then all bets are off.

All IMHO. Good Luck!

Just wait, you will be able to buy it for under $5.00 after the 15-1 reverse split.

Yes, but the question is: are we buying into a company that is looking to sell its assets to the highest bidder in short order (1-2 years) or are we buying into a company that is looking at long term production and therefore will not reach its full value for some time (5-10 years)?

Seen a lot of people speculating that this is a exploration company and the owners will sell-out once the land is proved, but insider ownership is not substantial enough for that idea to be true. Seems like they are going to milk this cow till the end.

The bottom comes after the Reverse Split. Wait about five trading days and then start to buy. JMHO.

They did not need the reverse split for that! The exercise price is good, but lets see what they do with the money beyond retiring some old debt.

I think with the ever present fear of a reverse split hanging over us this stock is going to play hell getting any traction.

Have to agree that the only logical reason for the vote was to buy time/space in case there was a notice of delisting. However, they will need news to get the SP up in any case, and today's news is not going to do it.

I would like to buy more but I am going to have to wait and see how this plays out.

Not to be a naysayer, but the 4-1 reverse split makes no sense. If it was to get back up over a $1.00 to remove the risk of delisting. But if that was your concern, why not 10-1 to be safe.

There is a reason to keep the ratio low, that is if you are afraid of diluting your holdings. Since the reverse split is not accompanied by a reduction in the number of authorized shares it means that management could do offering or private placements of up to 75% of the current holdings at a 4 to 1 ration. That amount would be significantly greater, 90% at a 10 to one. You could maintain your ratio if you grant yourself a large enough share of the the stock (or you somehow build in a safeguard that does not dilute your holdings by issuing you share equal to what you dilution would have been).

So if your reasoning was to increase the price then a higher ration makes more sense - if you are looking to have more shares at a slightly higher price to so you can issue/sell more shares but not risk diluting your position in the company, a lower ratio is better.

I am hoping someone can tell me differently, but I don't see a good reason, with a current SP of below twenty cents, to only ask for a 4 to 1 reverse split.

No, everything seems to be tied to the meeting later this month. Just feels like there is a lot more naysayers in the last week or so. If this wasn't such a small cap stock I would say there is a group trying to destroy confidence in future of the company in order to free up cheap shares.

Funny, according to NASDAQ it went up today.

We wouldn't be here if we would have rejected the settlement with Diac like Dave Williams wanted.





tick, tick, tick, ...

Reverse Split. They need to get the Share Price back up over $1.00 or they could be delisted. The RS has absolutely nothing to do with the inherent value of the investment. You will own the same percentage of the company after the RS as you did before. Unfortunately, RS's have been associated with attempts to increase the number of shares that can be issued. This means dilution. So there is a psychological aversion to a reverse split. Once reverse splits happen the share price usually falls a few percent (up to 30 or so).

Until this uncertainty is cleared up, and despite the fact that there is no dilution in value, the share price is not going up. In fact, some people will sell in hopes of buying back in at a lower basis in a few months. A reasonable plan, but not a certainty by any stretch of the imagination.

Its not going anywhere until after the R/S. Once that is accomplished, along with its normal drop in price of about 20%, then she will bottom and stabilize. At best next fall will be the next time to buy. Till then you can hold or sell, but nothing is going on here for a while.

I am actually surprised it stayed above .21. I fully expected that, with no news, and with the R/S pending, it would continue to slip.

It took a lot of volume to get us to nearly .23. Maybe we set a new base, but I fully expect that it will continue to fall until either news on Koko or the Q2 results.

My gut reaction is, no. FOIA requests are usually for government information not private information restricted by mutual agreement of two private parties. You could always try. I am not sure what good it will do, other than satisfy your curiosity.

I am sure people who have posted on this site know what was in those documents (and no, I don't mean BenLurkin). It is a bit irrelevant at the moment. The receiver has the ultimate power. I don't even think you could bring a derivative suit as an aggrieved shareholder at the moment. I have faith in the receiver. For the first time we have someone whose only interest, as the court appointed receiver, is to maximize return for the shareholder. If he fails to win, he, like the rest of us, gets nothing. So I am content to let him play this out the way he thinks it should go.

Well, if the plan was that the quarterly report was going to push the SP over .25 so that the 4/1 R/S took it over $1.00 I don't think it worked. Wonder what else they have up their sleeve.

Wasn't there supposed to be an earnings report today after the close?

Good volume but not much move in the SP. Are there too many unknown, unknowns out there with this company or is management's history of under-delivering and the specter of the R/S holding things back?

I get the feeling that management believes that they should have a higher SP. Until recently they really haven't done anything to foster the level of confidence needed for people to take a chance on the company. Releasing information on Koko was a good start. They already know their production numbers. Maybe they are expecting a bump when the next quarter is released. They seem to be headed in the right direction with the low overhead drilling deals until they have the revenue to do things on their own. And staying on a reputable market is another smart move. But I am still skeptical (as I am sure are others).

I was accumulating, and I may regret it, but I think I will sit on the sidelines for a while to see what happens after the R/S.