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Bassanio:
You are wrong to be in favor of a share buy back with so few O/S after a R/S buying back shares would be absolutely the wrong thing to do. The liquidity would already be to low after the roll back. Also buying back shares now would use up capital needed to grow the company. This size of a R/S will be bad for current investors in HRT, even a 10 to 1 R/S can send out the wrong signal. But it is far better then a 30 to 1.
What happens the day after the R/S takes place "who is going to buy HRT shares at the higher price," few if any. If the articles are passed giving the BOD more control, meaning the poison pill is removed. JG Petrochem ( Nelson Tanure ) will be buying as cheaply as possible. Which I fear he will be doing so to take over the whole company.
I believe you and DrillaHill are looking at the BOD proposals through rose colored classes and are not seeing clearly, what the plans of OF Nelson Tanures are.
One problem is the smaller amount of HRT shares will be spread over three stock exchanges. Making it even more illiquid for traders in it's shares. A 10 for 1 is more preferable.
The reverse stock split examples you posted were very minor in nature compared to the one HRT wants to do and done by better known companies. Again supporting a more realistic 10 for 1 R/S.
http://www.cnbc.com/id/42212417
DrillaHill:
The article statements that HRT made have omissions.
The following rules to be implemented by the BM&FBovespa on August 18th 2014 are mentioned in the following articles as stated in each of these articles it is to apply to new listings and existing listings have one year from that date to comply.
http://www.infomoney.com.br/bmfbovespa/noticia/3193845/bovespa-veda-penny-stocks-diz-que-quer-evitar-lobo-wall
http://www.arenadopavini.com.br/artigos/ofertas-publicas/bovespa-vai-barrar-listagem-de-empresas-ficha-suja-e-penny-stocks
http://www.infomoney.com.br/bmfbovespa/noticia/3193845/bovespa-veda-penny-stocks-diz-que-quer-evitar-lobo-wall
Brasil Econômico newspaper as of 02/17/2014
https://www1.fazenda.gov.br/resenhaeletronica/MostraMateria.asp?page=&cod=948115
If the R/S is passed the low liquidity of HRT will make it unattractive for investors especially institutions to buy shares in it. With the exception of JG Petrochem who will attempt to buy HRT shares as cheaply as possible.
I agree there was some infighting drama between Nelson Tanure and Discovery. After it was over I felt the company would get back on the right track to the benefit of all shareholders of HRT.
I only wrote to the CVM once, which as a shareholder was my right.
Articles governing a public company are standard in nature set in stone as you could say. For HRT's BOD to propose so many changes is unheard of and unnecessary. The only thing I can think of is that an investor who is against the removal of the poison pill has to read each article to find the one that shows the removal of it.
And to double check that he/she is voting against the article that removes the poison pill. It appears to me that putting all these article changes to vote on is a deliberate attempt to confuse HRT investors. The honest and correct way would be to state clearly the BOD's desire to have the poison pill removed, and the shareholders could vote for or against it's removal. A straightforward simple request receiving a straightforward answer.
I found the article that we were to vote on removing the poison pill. Since I found it unnecessary to alter the other articles and that my suspicions were that it was a deliberate act to confuse the shareholders in order to get the approval to remove the poison pill I vote against all the articles the board put up to vote plus I voted against all other items.
VanWilder:
As I have stated before I have been in the financial industry for 44 years. And have been in proxy fights before and know from experience this one is winnable. The ordinary shareholders have the votes to defeat the BOD proposals, and I urge them to vote against all of the BOD proposals.
You stated to me in a post that one of the things that financial 101 states is never buy shares in a company in which you do not like the management. The problem with that is you never see their true colors till they try to do something like this against the best interests of the ordinary shareholders.
You can be assured that if the proposals are defeated the operation of HRT will continue as usual.
No sane person could vote for the BOD proposals.
I got my proxies today and they are in the mail. I have never ever seen in my life so many changes that a BOD wants to make to the articles governing a company. You may get a company wanting to change an article or two usually minor in nature, but never have I seen the magnitude of changes that the BOD of HRT wants. One article they wanted to remove they said was actually a duplication of what was in another article. I had no problem with it so I voted against the change like I did with all the management proposals, I felt very good having done so and even better after I put it in the mail box.
I cannot see how any sane person can vote for the BOD proposals. I urge that everyone vote against the BOD proposals. No one wants to get rid of the present BOD, we just want them and Nelson Tanure to realize who really owns HRT which is mainly you and I.
I liked what was stated in the article, showing how undervalued the HRT shares are.
If it is really necessary to have a R/S, I could see myself supporting a 10 for 1 rollback. This would give the company the minimum share liquidity that is needed to attract institutions to it's shares.
As it stands now I will be voting against all of the BOD proposals.
biff2:
You are a very wise man we have a plan of action regardless of the outcome of the vote that will address all your concerns, which includes elimination of the fees Americans have to pay each year. As long as everyone sticks with Renzo and I we can beat them no matter what happens.
Right after the vote our plan of action will be revealed.
Hold onto your shares do not let the parasites obtain anymore shares no matter what the voting results are. We need the ordinary shareholders to retain control of HRT.
Do not let them steal our Company.
What is most important is that we get our share of the pie!! I am not selling any of my shares now and should these corporate bandits get their proposals past, I urge others to do the same so that they do not get control of HRT.
There are things that can be done to keep the power in the hands of the ordinary shareholders. Which we will work on after the vote.
ogopogo007:
Your slanderous remarks, name calling, denial of statements you made, calling me a liar after being presented with the facts. Maybe acceptable on other discussion boards but it is unacceptable on IH.
Ogo you know very well the post I was referring to was #3752 and not #3815, here it is again.
Posted by: ogopogo007
In reply to: None Date:5/22/2014 9:28:04 PM
Post #3752 of 3838
The "new version of bad cop....good cop"
Getting tired of amateur games here
What's the "broken part" ?
Rzbern has his ...vote for me ..Fiscal Counsel
Bad cop...from the north...I can't vote for you
Now,,kiss and make up...secret bs...now Rzbern and northurd agree...vote this way
The telling part.....when Northturd made herself moderator here and ...Van...got sick
WE can win against Nelson Tanure, we ordinary shareholders control the company, if we vote against all proposals in the proxy we will beat the BOD. After such a victory we must move to get a 2 to 1 reverse split of the GDS shares to become HRTP3 shares and get these shares trading outside of Brazil to become ADR shares in which Americans will no longer have to pay yearly fees on. As is the case of other foreign companies listed in North America.
After the 60 to 1 R/S of HRT GDS shares there will only be 2,290,000 HRT GDS shares. Is there anyone still in favor of the R/S, if so please tell us why.
Reverse split is a bad sign
Q: How do I figure the cost basis for a stock when a company does a reverse split? In my case, a stock I owned did a 1-for-12 reverse split.
A: There are two main ways for a company to boost its stock price: Make money and increase profits, or do a reverse stock split.
Reverse stock splits are a common tactic for small companies to bulk up their share prices. It's really just financial sleight-of-hand and should be a warning sign for shareholders in almost every case.
When a company does a reverse stock split, all it's doing is dividing its equity differently. It's like cutting a pizza into four slices instead of eight. But while the pieces may be larger, the size of the pie remains the same. Let's take your example of a 1-for-12 reverse split.
Say you own 1,200 shares of the company, which has 120,000 shares outstanding. And let's say shares are trading for $1.20 each. That means the company is worth $144,000 and your stake is worth $1,440.
As you can imagine, the company doesn't like trading for $1.20 a share because it looks, well, cheap. Also, the Nasdaq and New York Stock Exchanges have rules that require a company's stock price to be at a certain level (higher than $1.20). So, an executive at the company gets the idea to do a 1-for-12 reverse split. The company replaces 12 shares with one and multiplies that share's price by 12.
What does this mean to you? Your 1,200 shares of stock valued at $1.20 each become 100 shares (1,200 divided by 12) worth $14.40 each ($1.20 times 12). But your stake is worth exactly the same $1,440 as before ($14.40 times 100 shares).
To figure your per-share cost basis, follow the same arithmetic. You simply multiply the price you originally paid for the stock by 12 and divide the number of shares you bought by 12. You can double-check yourself by multiplying the two results together. If you're right, you should get the same original investment amount.
Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.
Charles Kaplan, president of the investment consulting firm Equity Analytics, told Bankrate.com, "It is usually a very negative sign when a company reverse splits their stocks." But how the market reacts often depends on what else the company is doing to reverse its fortunes. If it simply declares the reverse split and goes on with business as usual, investors may see the split as nothing more than a smoke screen, and the price may go right back to falling as they sell their shares. But if the split is accompanied by serious changes in management, structure or strategy, investors may give the company more time to right the ship.
They don't have to do that drastic of a R/S in fact none at all. They have not had problems of getting institutional interest in the past. They do not need institutional investors as far as their properties are concerned it is farmin agreements they need. Which has the potential of successful drilling results that will bring about higher share prices without a R/S.
HRT a oil producing company with positive cash flow. No debt, money in the bank and more to come. Working with other companies to monetize their gas holdings. With huge potential. Soon Rosneft will be moving fast to start drilling in the Solimoes Basin.
VanWilder:
I will make it a one sided bet if all the motions pass and it works out in favor of the shareholders. I will give you $10,000CAD. This is a public declaration, and an obligation on my part.
I hope I have to give you the money, but I fear it will not happen.
It is not at all necessarily the fact that all motions will be passed I know this from being in the financial industry for 44 years. If you are going to act like a defeatist you will end up a loser in life. Losing is never and option for those who ultimately triumph.
The puppet master is Nelson Tanure and the puppets are the CEO and Directors of HRT. If the vote goes their way Nelson will be taking over HRT and the BOD will accept whatever he offers for the shares that he does not own.
I have seen this happen in Canada and I can see the same thing happening to HRT shareholders. I am willing to bet money on it.
What we must do is vote against the proxy motions along with others in the hope we defeat them. Renzo has put a ? mark on the change of address motion, so we will have to wait to hear more from him before voting on it.
Regarding my phone call with aresoilventures I feel the gentlemanly thing to do would have been to have call me instead of expressing his views of it in public on two discussion boards. After all it was a private conversation, so it is expected to be treated that way.
That and the fact he said I used bullying tactics I found very offensive to my character and integrity. For that reason I deleted his message.
I have deleted several posts where people posted their email addresses, with the understanding of the IH Administrator and recently a post that ogo put on slandering me. I may have hit a grey area in a couple of others.
I felt we had a friendly conversation, if you felt I was bullying you, I would have expected you to be man enough to say so. To really be successful in life is not easy on many occasions you have to be tough, failure is always knocking at your door. I enjoy the challenges that come my way.
I have not lost any sleep over HRT, even tough I have $180,000CAD in it. If I lost it all it will not affect my life style one bit. I enjoy investing, if it wasn't for situations that come along like the current one with HRT I would find it to easy, less challenging and not as enjoyable.
I play to win and I have been pretty good at it, even if it means stepping on a few toes.
I asked you to call me back after you read the information if you had a problem with it and came to a different conclusion then mine. Before asking how you would vote I told you what was in the information before sending it to you, You stated to me you would vote against the R/S all the management proposals, hidden in them the removal of the poison pill and would vote for moving HRT's office to a cheaper location based on what I said. I cannot believe that anyone would agree to vote as I so call directed without knowing before hand what was in the information I was going to send them.
If you consider that bullying by me then I apologize for that.
areoilventures:
Give me a phone call in 1/2 hour and let us talk about our differences if there is anything I should apologize for I will do so in public. You have my phone number I promise to have a civilized conversation.
Northsun0
I have been asked is HRT a hold a buy or a sell. Right now it is a hold and not a sell based on defeating all of management proposals with the exception of moving their office to a cheaper location.
If you buy shares betting on the defeat of the management proposals and that does happen you stand to make a lot of money. If management gets their proposals past you will lose money.
Regardless of the outcome Renzo and I will fight till the bitter end so that we shareholders are treated fairly.
areoilventures it appears I wasted my time talking to you. By you now saying you plan to let them do so. After you telling me you would vote against their proposals, based on what I told you and the information I send you. I went over all the changes governing the management and the removal of the poison pill, which is included in theses changes. I asked HRT to send me in writing that in case of a take over we would receive the economic value of our shares they did NOT. You broke your word to me.
Tenure family and institutions do not control this company WE DO!! We have the power to defeat the proposals in the proxy. WE MUST DO SO OR WE WILL LOSE OUR COMPANY AND RECEIVE FAR LESS THEN IT IS WORTH. THAT I CAN GUARANTEE YOU I have SEEN THIS HAPPEN IN THE PAST!!
I have been in the financial industry for 44 years I cannot believe that you and Drillahill would be so naïve to say such things.
Reducing the O/S share count to under 10m shares is a good thing? ARE YOU GRAZY or are you actually being paid to post on discussion boards by the company. Which I know is a practice in the industry.
So what if we allow Nelson Tanure to take over the company which will happen if we pass the management proposals. If anyone does not believe this they must believe in the tooth fairy.
I had a Great Day on Thursday answering phone calls and forwarding my information, it took me two hours to eat my breakfast, my fried eggs and turkey bacon were cold, but no problem, the rest was all fresh fruit. I got a call from England, calls from Brazil, United States and Canada.
The response was terrific everyone is backing Renzo and I and are going to vote against the R/S and the removal of the poison pill and all other items being put up to vote on with the exception of the moving HRT's office to a cheaper location.
My contact email is sat599@telus.net
VanWilder:
If you should sell your shares or not because of the cut off date you will still be able to vote your proxies. I hope you vote in the best interests of the shareholders, and vote against the items with the exception of the moving of HRT's office to a cheaper location.
All of this is great if we stop the insiders from stealing HRT from us. The R/S most be rejected and the removal of the poison pill most be rejected and new rules governing the conduct of the directors must also be rejected.
Powerwalker I can't understand how I missed them try again sat599@telus.net Label it powerwalker HRT R/S.
All the investors I have spoken too agree with my approach to handling the information I have.
If this information was common knowledge they would not be wanting to do the R/S and remove the poison pill at this time.
VanderWilder:
My agenda is not to overthrow the HRT management but it is to have all items except moving their office to a cheaper location rejected by shareholders.
First hear what the information I have is before saying I should post it publicly. I am not being selfish but trying to put out the information in a proper manner.
The first step as stated to you is a two way phone conversation, then forwarding the information to you.
I am sending you a private message to address your question.
The information I have, will not be posted, it has three parts to it and names the person in HRT who supplied it to me. Everyone I have supplied this information too has pledged that they will not pass on this information.
I am prohibited by the IH administrator from asking you to post your email address but I cannot stop you from doing so.
The information was supplied to me by a person in HRT.
I obtained the information on my own, it was not supplied to me by Rzbern, I forwarded it to him as soon as I received it.
It must be obvious to most posters on SH that baggati and robnhood are working against the best interests of HRT shareholders.
I cannot encourage you to send me your email address but I cannot stop you from doing so.
I was told by the administrator that I cannot solicit emails on the board. I hope that those who send in for my phone number will call me. Everyone who has is pleased that they did so.
I will have to put a lot of thought into whether I should post the information I have.
Some smart move that was in CAD$ that works out to be higher then .139US per share and now you will have to pay the 2 cent GDS fee per share the Americans have to pay. What did you pay for the 60,000 shares that filled your order to 100,000 shares on the US market.
I figure with the difference in the CAD and US dollar and exchange fees, your average cost per share is about .16CAD plus .02US to be paid in June, the shares will then average out to be about .18CAD.
Those anyone actually believe GusGold was able to buy 100,000 shares of HRT in Canada at the all time low of 14 cents, when the total volume for HRT was only 283,000 shares during the day he announced his 14 cent purchase, and most shares were trading at higher prices.
I left out the following closing remark.
On behalf of all HRT shareholders I request that you investigate this matter and take the appropriate action so that all stakeholders in HRT are treated fairly and the insiders of HRT are not allowed to proceed with the R/S and the change of the bylaws of the company.
Regards,
XXXXXX
XXXXXX