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Strongus -- It looks like there are two groups here, or at least two dialogues going on, one positive and one negative. I would like to suggest that we create a second NWOG thread where no negativity would be permitted, only discussion of a positive strategy to deal with the company. That would let us focus on developing rapport and healthy communications with NWOG.
My feeling is that the company has chosen to insulate itself from the negativity of the minority shareholders by not answering calls or responding to emails. Those engaged in negative dialogue could read the other thread, but their posts would be deleted if they are not helpful. That way, everyone could have their say but on different threads.
What do you think?
Hi Eik
I tried calling Maria at the number posted on the I-box but she was not available. I was told by another secretary to send an email but have not yet received a reply. If there is a private line to reach her, could you PM me? Many thanks.
Lochan
We know the mistakes of the past, and they are the pillars of future success, if you learn from them. CEO is just a title on paper. What Maria can do is channel information from the company to us shareholders and then communicate our suggestions back to those who are really calling the shots.
Let's not expect more from her than that.
Most important, let's stay positive and put all venting aside, at least until the audited financials are released.
That will help us remain upbeat and maybe help the PPS as well.
Hundreds of Russian companies have moved onto the AIM, the reason being that Russian banks are mostly local and have not the means to finance significant corporate expansion. There are many institutional investment companies that are available
through an AIM listing. NWOG is determined to get there. However, they are still contemplating the need to move off the pinks. We should give them a push in the right direction.
Regarding Maria's qualifications to act as CEO, she seems more like the office manager but is still a key person on the management team as it stands today. Hopefully, she will grow with the company whose real voice is Mr. Malyshev.
Once the company has audited financials, what is required to move onto the OTC:BB? How long would it take? What would be the cost and who could take the company through the necessary steps?
I agree completely, vic, and we should be speaking with
the management of NWOG to convince them that the pinksheets
is not the place for them to be and never will be.
Should a move to the OTC:BB precede the AIM listing? That is the question. Maybe we could get a consensus on that from I-hub members on this thread and our rep could then explain to the company how it will add to their credibility. I know they are thinking about the success Petrokazhakstan had on the pinksheets, but you are right, vic: MM manipulation is killing
us here.
Thanks, EIK, for this most valuable input. I can understand why the company might be hesitant to deal with an "official" representative. What is important to us as shareholders is the regular flow of updated information. A ten minute call once a week would do the trick. You could ask Maria (maybe you already have) if she would mind if you pass along whatever information you gather from your conversation with her to other shareholders. The benefit is that she won't have to deal with all of the emails from individual investors that swamp her office each week.
Nothing needs to be made official. Official announcements will come from the company in the form of PRs. What we are looking for is to strengthen an unofficial connection that already exists through you. You know the psychology and how to relate with NWOG. Even in your last post, you have told us something we didn't know, that NWOG insiders are even more interested than we are in moving the PPS to a higher level. How did you know that? Please tell us more. The majority shareholders, although their shares are restricted, want to see some capital appreciation right now. This vital to the financial well-being of all NWOG investors!
Another important point is that NWOG is not fully aware of how their presentation of financial information affects share price, what to speak of missing deadlines, especially those they themselves announce officially in their PRs. This especially holds true on the pinksheets where price fluctuation is all about the perception of credibility.
Please let them know that their filings of "fancy papers" is not meant to make U.S. shareholders happy. It is a formality that will allow the company to take its place among the next tier of producers by giving it access to capital markets that
are not available through Russian banks. In moving from a private to a public company, they have to begin to "think outside the box," adjust their vision of who they are, and surround themselves with professionals who can help them take the next step.
You're not alone JW, but no one is promising we'll get back to .60 any time soon. I sent an email to Maria to see if
it might be possible to set up a weekly call between management and a representative of I-hub shareholders. If we
can get a steady stream of positive information flowing, this predicament will start to turn around. Many of us would like to know how these deals in Syria, Jordan and so on are
progressing.
"Why couldn't a $5.5m company go out and hire qualified help on their own?"
I guess you mean an IR dept.? With all the experience on this board, we could probably recommend who they could hire, since they don't seem to have a clue. But why have an intermediary if we can deal directly with them? It would take an IR firm many months to get up to speed just to find out what we already know.
Or do you mean hiring an accounting firm that knows GAAP? Maybe RSM Top Audit is on top of it. They should be, if they are one of the principle international auditing firms as they claim. Agreed. The company should take responsibility to have this all done correctly, and we would be able to apply pressure (discretely) in that regard if we had regular talks arranged through an I-hub rep.
My own question has to do with the 33 million barrels of oil
proven and probable claimed by Nord Oil pre-merger. I would like to see whether those depletable assets are reflected in the NWOG financials or notes to the financials. I would also like to ask whether the new company has any intention of making use of the licenses formerly held by Nord at any time in the future.
As for why they don't hire additional professional help, it may be because current liabilities are already so high and their cash position is so low. Trying to lower expenses.
My last comment tonight: Morbid curiosity is better than
no curiosity at all. Or, as the saying goes, a blind uncle is better than no uncle.
Thanks, cynic2005, for your greatly thoughtful comments.
Lochan
I agree. EIK is great. I like EIK. He is already communicating
with Maria. She trusts him. He's a good rep. Maybe one or two other regular contributors could work with him to list the points that need answers to clear up the communication gap. We really need to have cynic2005's points emphasized to the auditing company.
Maria doesn't seem to know much about the financial side of
the enterprise. For example, she thought the balance sheet was affected by market prices. Not! Perhaps she could connect us with the company's accounting dept. and we could let cynic2005 loose on them.
I-hub friends, I will stay tuned to the board in anticipation of wonderful developments. My comment is: why must we be like every other MB, bashing and pumping? Let us do something different and worthwhile. Let us set the example of how a message board can have an impact not just on market value but on the actual running of a company.
"They set a date and they failed."
The date they announced was April 3rd for the year ending
March 31, 2007. You and I both knew it was absolutely impossible to release audited financial statements three days after the end of the period. What the last PR stated, however, was that consolidated financials would be posted on April 3rd, which is what happened, and that audited financials were being prepared for filing purposes. That was entirely believable, and that is what they are doing.
I still agree with you that there should be no flaws
whatsoever in the AF's they are about to present to the public and submit to the required agencies to become fully reporting. If we had a designated I-hub rep, he could arrange through the company for you to speak with the auditing firm to clarify some of these points. At least we want to know that the AF's fully conform to GAAP before they are filed, even if that means waiting a few extra weeks.
I wish I knew your first name so I wouldn't have to call you cynic2005, but anyway,
I really appreciate your input and professional opinion, especially concerning the financials. There are obvious discrepancies which should be corrected before the audited
financials are released. I remember pointing out similar
errors a year ago when the line for "earnings per share"
on the fiscal 2006 report showed total net income instead.
If I were a manager of this company, I would welcome your input to avoid the embarassment of releasing faulty financials. If we got the company to agree to speak with an
I-hub rep, your suggestions and critique could be submitted directly to management for their consideration.
I thank you for all you have said and appreciate how you have tempered your criticism of the company, considering that
we have not seen the notes to the audited financial statements which hopefully will explain what appear to be discrepancies and misstatements of assets and equity.
Thanks, Maki
I agree with you 100%, that we have shown our support of the company simply by investing in it. Now we need to just get a little organized so the company won't feel under attack, and ask the questions we need answered without threatening them with lawsuits, SEC investigations, and so on.
The monthly conference call is not enough. They kept saying, "Wait for the financials," but we have not had our questions answered by the unaudited statements posted on the website. We should have scheduled a Q&A conference call to discuss the contents of those statements, but we are not organized, and that meant that every disgruntled, cynical basher was able to inject his negativity into the discussion of NWOG because they had complaints we did not have answers to, and no way to get the answers.
All we need to do is make one call to Maria to see if they agree to speak to an I-hub representative once a week to answer a few of our questions. They should agree simply because it will cut down on the hundreds of redundant emails they are currently receiving from I-hub members and other dissatisfied investors.
Chowme -- It's all right if you're down 90%. This has been a roller coaster ride for all of us from the beginning. But let's first look at the positive side of a profitable, growing company with tens of millions of barrels of oil to pump before thinking about selling at these prices. In your study of finance, I'm sure one of the first lessons was to not trust any "get rich quick" scheme, pinksheet stocks included. But to get the most bang for your busk, NWOG has to be seen as a long-term investment, not as an easy 20% flip.
NWOG got listed on the pinksheets by way of reverse merger
with Nord Oil. However, a look at its financial statements will show that it does not really have the characteristics of an ordinary pinksheet stock because of its huge inventory of proven and probable oil reserves. It has already shown its profitability for more than one year and is involved in negotiating further acquisitions to increase production.
As more information becomes available concerning its projects
in Syria, Jordan, and so on, the more attractive this will
become as a long term investment. If you will permit me to offer a word of advice, stay in school. And don't bet against a company with $5.5 million in net income with audited financials on the way and an uplisting to AIM still to come. Go long, young man, go long, and your 90% loss will become a multi-bagger gain before you get your finance degree.
Strongus2006
Why should help not come from this forum? As mod, maybe you could call for a month-long moratorium on the negative posting and constant whining you spoke of which is driving the morale on this board and the company's pps further downward. One negative, whining post might be read by 100 Ihub members. And those negative messages are then posted on other boards, the total effect being to drive away new capital and to create panic selling, even at a great loss. No one's best interest is served by allowing this extreme negativity to infiltrate the discussion of a company with $45 million in revenues and $5.5 million in profits.
I think the company would agree to share information with one or two shareholders who represent the board and its readers
on a weekly basis in a fifteen minute phone call. They could get back to us a week later with a response to any questions they were not able to answer the previous week. This way, Maria would not become an "email girl" and could do her job all week long and then have something positive to report to the shareholders each week.
The Russian managers of NWOG obviously have no idea how to deal with their international minority shareholders. It's up to us to guide them in this area so that a feeling of mutual trust can begin to grow.
wishmd -- I gotta say how much I appreciate the points you have raised. You're are a sharp investor and should be involved in these conference calls with the managers of NWOG to help us get the answers we need to make sound investment decisions. Nobody should invest here on blind faith, or by throwing darts at a pinksheet page.
The information we seek will become public knowledge the more we communicate directly with the company. I don't see any unwillingness to communicate on the part of management; I just don't think they have been prepared to answer the questions being thrown at them. I think they will be much more open though once the AF's are out. They will also be publishing quarterly reports which will help build credibility.
I got into this company with a three year horizon. I've got eighteen months to go, and I still expect to get back ten times what I invested.
As I expected, people here are setting themselves up for further disappointment by saying the AF's will be out on April 27th. The company has not made any such statement. The auditors said they expect their job to be completed between April 27 and April 29. Those dates are also approximate. I expect the company to announce its release of AF's around May 15th, but let's remember that their main business is to increase operations, not satisfy our demands to release AF's on a particular date.
If you consider that net income for the year ended March 31, 2007 is 13% of total revenues (which exceeded $45 million), you have to give credit where credit is due. NWOG is quite profitable and has been for more than just this past year.
There are not many CEO's of pink sheet companies that can claim they earned $5.5 million on sales of $45 million.
True longs are not too worried at this point because NWOG will be moving onto the AIM a year from now and may well become a prime buyout target for a major producer in 2008. By that time I expect to see sales projections of $100 million for the next fiscal year (2008). Once we have the figures for proven and probable reserves, we will be able to more accurately estimate a possible buyout price. Fluctuations in current PPS will not be that important to us longs once the value of the company can be reasonably appraised based on the value of its oil reserves. All in my opinion.
You are so right, strongus. A very intelligent analysis of the situation. With disgruntled shareholders viciously attacking the new management of NWOG, why would anyone expect the company to respond by better communicating its plans and accomplishments to us? We only own a small fraction of the outstanding shares of NWOG, so everybody should deal with the company's managers with respect and decency if we want them to reciprocate. That will require a degree of discipline and self-control. We would probably be well-advised to have someone represent our group to interact with the NWOG staff
instead of us leaving angry voicemail complaints and writing accusatory emails. Let's get organized and stop shooting ourselves in the foot. We may feel like bagholders right now, but that is a temporary state of affairs. What we need
on this board is to hear more positive input from anyone who is still holding their NWOG shares. And, finally, nobody should threaten Maria. That is just unacceptable.
That's funny, NYCguy: "At least we closed even today."
I'd like to see the hat you've prepared for the stroll down Fifth Avenue this Sunday, maybe with fruits and flowers decorating an old oil rig.
Thanks for your great humor.
It was posted here that the auditing company will complete
its work between April 27 and April 29. Let's be careful not to make this the deadline for the company to release its audited financials. We should wait for NWOG to officially announce the release date, and then add a week or two to cut them some slack. Although he's long gone, the company still seems to be running on Parkin time.
What I like about the financials so far is that we had net income of $5.5 million for the year just ended, boosting the retained earnings to over $15 million. That is so rare for
pinksheet stocks which almost all show a deficit in retained earnings. Current Liabilities are too high though, about six times Current Assets. I wonder how the Company will handle that? They'll probably arrange some Creative Financing, converting it to long-term debt.
If you were to look only at the year just ended without comparative numbers from the previous year, everything looks pretty solid. We cannot really give an opinion on the comparative statements without seeing the explanatory notes. Hopefully, they will be part of the audited financials and our questions, at least the major ones, should be answered.
The main thing is that NWOG is a producer. No one should be doubting at this point that oil is flowing out of the ground and that we are a profitable enterprise. We've even made provision to pay $1.75 million in taxes. Longs are singing "Too legit, too legit to quit!"
The auditing firm has said they expect to finish their work by the end of April. More patience is required. GLTA
To cynic2005
You might say the financial statements do not appear to be credible, but that is because the company has posted them without including the explanatory notes. I think a spin off of a segment of the business could have the effect you pointed out on asset base and paid in capital, but I could only know that if I saw the notes to the financial statements.
I would suggest that rather than just express cynicism, you
could either contact the head office and talk to the company's managers about the defects in their reporting style or hold your criticism until the audited financials are made available in a few weeks time. Best might be to offer your professional services to help the company navigate its way through GAAP and GAAS. They may even offer you a few rubles (or shares of NWOG) for your work as a consultant. GLTY
Even if NWOG was the auditing company's only client, it would be impossible for audited financials to be released just three days after the end of the fiscal year. First, there are closing entries that have to be entered. Accounts payable and receivable have to be determined as of year end. Long-term liabilities, credit line balances, depreciation of fixed assets, valuation and amortization of intangible assets, all have to be calculated. Then the auditing process begins, and generally, after all of the investigative work is complete, a supervisor will examine the "work product" before it is released with the auditor's comment. The whole process can take many weeks to complete once the quarter ends. How anyone could expect to see audited financial statements on April 3rd for the year ended March 31st is beyond me.
You are totally correct, SR. It may take some time to get
those AF's, so for now we will take advantage of the dips to add to our AURC position. When this company becomes fully reporting, today's low prices will seem like a figment of the imagination. GLTA.
Starboy, I love your charts. They always come at the right time.
For anyone who is in this for the long haul, it looks like the next couple of weeks will offer a great opportunity to accumulate in the .06 to .08 range.
Have a merry Christmas and a happy New Year, everyone. The year 2007 belongs to NWOG.
I appreciate your sense of honesty, Creede. I wish everyone had the same degree of integrity as you and Brent, but in the business world, it is very rare. Therefore, I think it may not be reasonable to hold the managers of pink sheet stocks (or perhaps any businessmen) to such a high standard.
I read the same PR you did, and I was almost certain the dividend would not be cash, although it was implied. I am also not convinced that the second dividend will come three months after the stock dividend. I believe they intend to pay a cash dividend eventually, but the Board of Directors may decide to continue using the company's cash for future acquisitions and equipment purchases for some time to come.
Personally, I'll be happy to receive a gift of an additional
40,000 shares of AURC six weeks from now. I will only begin to sell shares after the price is above a dollar, and only shares I have held more than twelve months.
I agree, Benz.
Vic, you shouldn't be posting when it's that time of the month.
That's a great idea, M1. This is basically a long term play
for real investors. It may take a few more months, but eventually we will be listed on the London AIM which means that institutional investors will be pushing the pps up, up and away. The company has real assets, is increasing its revenues, and is well connected in business and government circles. We may not have seen rock bottom prices yet, but those buying in now will be richly rewarded.
Hey Brent -- No harm done. What I meant to say in my previous post was that I would be buying ATWT (not CKYS) at .0032.
Nice move upwards for GBDX today on the latest PR. This
company is a diamond in the rough and deserves our attention.
All the best,
Lochan
What's your point?
Hi Brent, and thanks for contacting me.
I was surprised to get a call from Alex of GBDX this evening. He jumped all over me, thinking I might have been the person who called the NYPD Organized Crime Unit to complain about the company. I don't really want to go over the events of the past few days again, but you can check it all out on the GBDX thread.
I might not have told you before, Brent, but I'm a member of the Brooklyn Tabernacle's Men's Chorus. I have to stay focused
on two presentations we are preparing for this weekend -- one for a homeless shelter and another for a church service on Sunday morning -- which means limiting my time on the computer for the rest of the week.
Recently, I've been accumulating GBDX and I'm still holding NDOL and AURC. I'm looking forward to the financials coming out tomorrow after hours for SLJB which is also in my portfolio. If the financials disappoint, I'll probably sell half and buy CYKS which is supposed to take off from its present price of .0032.
I wonder which of these companies will make it to a higher exchange. Wishing you all the best.
Lochan
URGENT MESSAGE TO ALL GBDX SHAREHOLDERS
I just received a call from Alex at GBDX. He said a shareholder contacted the NYC Police Department's Organized Crime Unit accusing the company of fraudulently cheating him out of the money he had invested in GBDX by running a scam operation out of a NYC office building. The police came this morning to the office of GBDX at 2 West 46th Street. Alex said this police activity could have seriously jeopardized the company's ability to remain in business.
Alex is insisting that no one attempt to breach security at the new office building. Anyone who tries to enter the building and gain access to the sales office at 2 West 46th Street who is not a jewelry wholesaler will be arrested.
He mentioned that the Company's name will be posted on the building's register in a few days. Their lease for the office space is for five years with renewal rights for an additional five years. This is no scam. He stated very emphatically that shareholders must not try to gain access to the sales office. Such an intrusion could cause the company that insures GBDX to cancel its policy which could cause them to shut down. That would make our shares of GBDX pretty worthless.
PLEASE DO NOT TRY TO ENTER THE BUILDING AT 2 WEST 46TH STREET
WITHOUT AUTHORIZATION.
DO NOT CONTACT POLICE OR ANY OTHER GOVERNMENT OFFICIAL TO HELP YOU GET INTO THE BUILDING. YOU COULD BRING ABOUT YOUR OWN FINANCIAL RUIN.
Lochan
The company has proven its integrity, as far as I'm concerned,
and I won't be bothering them anymore. I do believe though that it's good for the company to know the shareholders are watching them and are aware of how they are managing the affairs of the business. In a sense, it's our obligation to keep some pressure on them, but not to the point where we become an annoying distraction.
As far as the term of their lease is concerned, to answer the question of another poster:
I asked the building owner if GBDX had a ten year commercial lease, and he replied, "Five years, with the right to renew for an additional five."
Obviously not a fly-by-night operation.
I'm glad you all appreciated the DD. Just to add a tidbit:
The owner told me that the lease GBDX signed has been in effect for some time and some kind of legal action was required to get the other tenant to leave.
BTW, I added 75,000 share to my position today. Let's all try to get along and encourage others to invest here. GBDX looks like it will become a winner in the near term. I wish you all the best.
SL -- I got your message and wanted to let you know that GBDX has a lease on room 704 at 2 West 46th Street, just as they claimed. I spoke to the owner of the building today and found out it is a five year lease with the right to renew for another five years. The former tenant was still in that office space because they had not made suitable arrangements
to move to a new location. You can see my post #16548 on the GBDX thread.
After much detective work, I was finally able to get in touch with the owners of 2 West 46th Street. They confirmed that Global Diamond Exchange has rented office space on the seventh floor of their building, specifically, room 704. GBDX has a five year lease with the right to renew for an additional five years. The name of the owner is Belgo African Diamond. I suggest that no one else call BAD because it will simply annoy them.
The tenants I spoke to when I visited the building on Friday were still in the space because they were not able to move to their new location before their lease expired. The owner told me they are now sharing the space with GBDX and will soon be gone. This was very reassuring news from the owner. He said the company had rented the whole suite, not just a room.
I can also tell you that the description of the entrance to
room 704 is high security, just as it is described under FAQs on the GBDX website.
I told Alex I would be contacting the management office
at the new location on Monday and he replied:
"Please continue to do your DD. I will be there Tuesday with some execs and can probably assist you better once I see the place and see whats going on. I am not sure what you will get on Monday."
I hope this is on the up and up. I find it unbelievable that
a new company (GBDX) is moving into an office in two days and those they will be sharing the space with have no idea what is about to happen. If GBDX had given Dec. 5th as the date,
everything would make sense because that is the date the current tenants of Room 704 are moving out.
I'm still long on GBDX and I am giving the company the benefit of the doubt on this. I believe what they have reported concerning their other business dealings is true. If the price drops on Monday, I will be adding to my position with the hope that a flurry of PR's will push the pps above my average cost.
I am at your service.
We do what we can.
Headed out now to Times Square.
Lochan
Spoken like a true Christian
"My favorite retribution is inoperable malignancies (tumors) deep in the brain.
"The untreatable nature of these phenomeonon causes the loved ones great sorrow and heartache- all in time for the Christmas Season , a time when normal decent people celebrate the birth of Jesus."
And my reply to Alex:
Thanks, Alex, for your quick reply. As part of my due diligence, I will still check with Charles Greenthal on Monday to confirm your lease at 2 West 46th Street.
Best regards,
xxxxxxxx
Reply from Alex, just received:
why would there be evidence of us there if we havent moved in yet? You will see us there next week. I will be at the office on Tuesday, until then you will not see GBDX anywhere on the building. I thought that was stated in our press release, that we will be moving this coming week.