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RD It is time that yeu learn to see shades in statements. I did not state that I believe that you engage in wishful thinkling. If I had entertained that I dea I would hardly have increased my stake in this company by 21,000 shares a few days ago. What I stated was: "...... I suspect your reasoning is so much wishful thinking." I have an open mind regarding this question. Your reasoning may turn out to have a good basis in reality or it may happen that this is not the case. Nobody knows which of these is the case. If you read past posts I think you will find a high degree of scepticism among some of the shareholders who have owned this stock for many years too. The current price of this stock proves that the market thinks that the chance that your scenario will come true is very slim indeed.
RD Interesting reasoning. "The government has to play this by the book." I hope you are right.
RD I hope you are right but I suspect your reasoning is so much wishful thinking.
RD I too t hink that the first scenario is more probable than the second. The second scenario does not seem to mame much sense.
gosox I get the impression that you have no knowledge of what the situation is. About 90% of the company is owned by entities in China. My impression is that these do what they like regarding almost all the assets in China. My impression is that the Chinese living in the USA don't control the assets in China that represent almost 100% of the assumed net asset value of more than 10 dollars per share. My impression is that the Chinese owners in China would like to see the currrent situation to continue. There may be a conflict of interest between those Chinese representing HERB in the USA and the Chinese owners in China. The above is just my impression. I doubt that even RD does not KNOW much about the real current situation. It could be that the interest of the Chinese owners of shares who just own a small part of tthe company may be more or less aligned with our interests.
jmr Why do you bother with the pps of this stock that is haddly traded and where a trade or two per year represents very close to nothing when it comes to value? You waste your time here in my view.
RD I had a suspicion the reference was to this group of investors too.
RD Thank you very much for providing this information. The contents make IREEM seem a more interesting company than I had expected. Things seem more advanced than I had expected. The most surprising informatioon to me was the following: "Combined assets under management is over 2.2 Billion USD." I assume that this refers to IREEM LLC since there is no information that this is not so. Information I miss though is the sharecount of IREEM LLC.
RD In both cases it may be worth more than the cvrrent pps.
aandt "Not sure about this month, but they seem to quite serious about moving forward with their plans for the company." I have the same impression and that is why I increased my stake.
RD I bought 21,000 shares yesterday because I hope there will finanally be some positive news avout the preferred dividend. Moreover, I agree with Traderfan that 20 cents is quite cheap based on the earnings per share that have been achieved recently according to recednt financial reports. I would be happy with ne dollar per share.
RD Thanks a lot for your update. Things seem to be going a lot better than I had feared. As you probably know I have a pessimistic bent of mind.
RD Thanks! If I remember correctly there was one that was to invest about 40 million dollars. I guess it must have been somebody else. The missing money is little more t han one percent of 40 million dollars.
RD "1) The parther didn't want to pay the fee until after the acquisition was final." Who or what sort of entity was the partner?
The asked prices moving up: MPID
Ask Price
Size
Time
JANE 2.00 100 11:25
NITE 2.00 100 11:25
GTSM 2.29 3,000 11:18
CDEL 2.36 1,000 11:19
INTL 2.36 100 11:19
ETRF 2.50 1,800 11:10
CSTI 2.76 100 08:30
OTCX U 0 07:45
RD Thanks a lot for a useful update! The situation appears to be a good deal better than I have feared after the BIOT failure.
It is now Wednesday. Where is the Monday update?
MM I think you are not right. You refer to BIOT and not to ITUP. BIOT failed because of a lack of 400,000 dollars. My impression has been that the timing of the relisting of ITUP has been somewhat hazy but during the last part of next year at the earliest. But it could be that the failure of financing BIOT may have some effect on the potential listing of ITUP too. I have no information about the real situation of ITUP, Masala Capital and Cow Capital right now.
Petrejus Of course it is against the rules not to report everything to the auditor but do companies always act the way they are supposed to when it comes to financials? What do you do when you are in an impossible situation? You may be damned if you state the truth and if you don't. I believe this dilemma has been discussed here before. I have stated before than the way this company has been acted over the last years my definite impression has been that it has not had access to enormous sums of money.
Petrejus I agree with that statement. But the option is not to provide any information relating to assets that might have been off the balance sheet.
What I wonder about: Is not the adutitor dependent on the information that is available to ithe auditor? If the auditor has access to no information about the possible big assets the auditor cannot pay any attention to them I guess. Does the auditor have to audit the numbers many years back? It it has to do that I understand your question?
gosox I think there are others who have a better basis for assessing the prospects of the pps this year than I have.But I think it is not realistic to expect the pps to explode. We have more or less been promised that the financial position will be substantially improved with current loans being repaid and new and better financing entered into. My guess is that this will be an important positive factor regarding the pps. I seem to view the new contract for 167 milliion dollars differently from other posters who may have a better basis for assessing it t han I have. If you buy a cell phone there is sharp competition between the producers because the hardware performs differently in a consistent way. If you buy gasoline or diesel the price seems to be what matters and not who produced them. If there is a deficit of product the price rises and if there is a surplus the price falls. Everybody can sell what they produce by lowering their prices a bit I guess. Unless t he contract entered into means t hat the jet fuel will be sold at a better price than the one that obtains in the market I find it hard to see that the contract matters much regarding the pps. I find it hard to see why our company would sport a much higher p/e ratio than a NYSE company in the same field of business. Thus I am moderately hopeful regarding the pps in coming months. What nobody knows is how the gap spreads will evolve. That is of course hugely important when it comes to the future pps for BDCO.
gosox I think quite a few know about this company. I think the reason why the pps is so low is that oil refiners are under a cloud because they are regarded as a sunset industry. AS RD mentioned a NYSE company in this sector had a significent rise in the pps the other day. It is trading at a p/e ratio of 2.2 as I mentioned. Today the price of crude is down 3% in my country at least.
gosox The problem is that there are very few buyers of these shares.
Same with me too.
RD I checked its p/e ratio. It is 2.20.
RD Despite the total silence from your employer it looks as if you have received your salary at the right time this month too.
What happened not long before the close is what has happened again and again and again: Somebody sells a considerable number of shares with apparently no limit and the pps drops drastically because there are few binds. Why this happens I don't know. It may not have too much effect on the pps in a day or two.
The market is surprisingly tight right now. Very few shares at the asked price at any price. Shareholders seem to expect some great news.
Novacane "If you have too many shares many will be shaken out." If you understand what you stated literally (too many shares) you may be right. I think post readers will think that you mean a lot of shares. Then it is illogical. If you have a lot of shares you may for instance sell enough shares to cover your costs in buying the shares and still have a lot of shares after that. If you have relatively few shares you may feel that you cannot sell any in case the pps may go still higher.
Novacane Your advice seems illogical. If you expect the pps shareholders to enjoy amazing gains over three years it would be natural to advise people to buy more shares and not to absatin from holding too many shares.
gosox The way I see it crude, diesel and jet fuel behave differently from for instance computers. If there is less demand than what is produced the price falls so that there is a new balance between production and consumpltion. I find it hard to understand why such a contract matters much for a producer of jet fuel. I have assumed that everything that is produced is sold and that what matters is the price at which it is sold.
gosox I agree with the first part of your post. There is only fitful substantial buying as in the past. In this sort of situation is is normal that the pps falls back again I think when there is no hitting the asked price. This sort of thing has happened again and again since last summer. The pps was traded at a high of about $ 2.10 in this period. It seems that it takes substantial news to take the pps significantly higher if the pps is to stay at that higher level.
I have no opinion as to the possible shorting. There may be shorting or there is not in my view. But I don't think shorting is necessary to explain the way the pps movesl.
MM Having the cash in one's sccount is not always enough based on my experience! It happened to me that a dubious US company declared a dividend which was to be paid a particular date. My Norwegian broker paid me the dividend according to the information received. Later the money had to be paid back. The reason was tjhat the dividend was not paid by the company in accordance with the obligations of the company.
Only 400 shares for sale below 2 dollars!:" 1.90 100 10:25
GTSM 1.93 100 02/03
JANE 1.94 100 10:20
INTL 1.94 100 10:20"
Surprisingly high bid this morning. This is encouraging
Traderfan BIOT looked interesting as an investment if you were in a position to pay $ 1.25 for the shares in BIOT that were not covered by the in REEM LLC shares. If you made no additional payment the calculated profit from having shares in BIOT would have been vastly reduced compared with at least my expectation. I have no fresh money and the Cow Capital alternative therefore appeared to be the most attractive one.
When it comes to the warrants you mention I don't want to comment here on the possible legal implicatons as I have a degree in law in my country.
Traderfan I notice that BIOT is down rather sharply today compared with the way this stock has been trading for several weeks. The trehd of the pps has been consistently upwards until very recently. "10.14
-0.09 (-0.88%)"
I guess the very narrow trading range reflects a situation where the shareholders will have their 10 dollars back (plus some interest?) if there is no combination?
Big buyer: "CDEL 1.75 25,315" It looks promising that a big buyer appears. Very recently there was a seller that offered 30,000 shares at a pps of $ 1.65.
It has happened several t imes that the pps jumps when there is a big buy and comes down again very fast afterwards as far as I remember.