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downthehatch The reason may be that somebody bought almost all the shares yesterday and bought all the shares he or she wanted to buy. I think it is unlikely that many different people bought all those shares. These days it is normal that few shares trade. If anything is strange it would be that somebody bought all those shares I guess.
Moreover, more people may be interested in investing in gold if it turns out that inflation will continue at a higher level than before since tnat may make gold look more attractive as a relatively sfafe haven as far as preserving the value of one's assets is concerned.
Dear Laxmi, thaks a lot for the clarification! I guess it may be useful for othjers to know too. It is not always easy to evaluate the implications of new information.
In my view net profits are usually more important than gross profits. But based on net profits the shares are extremely cheap too. I expect earnings per share to be much higher than the current pps.
50,000 shares traded and the pps does not move much. Either there is heavy naked shorting or unhappy caampers using the buying interest to sell some shares.
The number of the float is of course so much nonsense. For periods this stock has traded as many shares per day as the alleged float. What I wonder about is what has happened in the second half this year. Next to nothing?
Is the time for Cow Capital to start operating extremely promising now? Here is a quote from a financial Norwegian newspaper today:
"Snart vil hedgefondforvalter Tor Svelland tilby gullhandel på Oslo Børs: – Det er på høy tid
Hedgefondforvalter Tor Svelland tror sentralbankene kan ende opp med å måtte kapitulere i kampen mot inflasjonen. Nå vil han tilby norske investorer beskyttelse i gull – som skal lagres i et hvelv i Sveits."
Before long the manager of hedge funds Tor Svelland will offer trade in gold on the Oslo Stock Exchange: - It is high time to do so. Hedge fund manager Tor Svelland thinks central banks may end up capitulating in the fight against inflation. Now he wants to offer Norwegian investors protection in gold - which will be stored in a vault in Switwerland."
Cow Capital may soon offer a better alternative?
RD The implications of this seem pretty unclear to me. The reference of cash already being used in the Chinese operations suggests to me that small sums of money are involved. After all, the Chinese activites t hat are reported are quite limited. Moreover, the crowd financing activity is of modest proportions. All indications I am able to see in what is mentoned by the company suggest very limited sums of money rather than hundreds of millions of dollars.
Actually I think the average of my almost 8,000 shares is about the same. So far we have had to be modest when it comes to the stock price of this company, lol. I hope t hat will change in a big way next year.
This means that the value of our shares is up 100% this year, which is not too bad.....
Catch 22?
Our problem In my view earnings per share and the changes of them from quarter to quarter matter much more than revenues if a company is reasonably profitable. Why is the pps so low? I think there are many reasons for it. I think the pps would have been not miuch below 2 dollars per share if the earnings per share had been around one dollar per share, which was the expectation based on the prices of crude oil, jet fuel and diesel during the third quarter. Instead earnings per share were not even 50% of what they were during the preceding quarter. In such a situalton it is normal that the stock price reflects the weak performance when it comes to what matters most.
Why were earnings per share less than 50% of what we had reason to expect? There could be several explanations. One possibility derives from the fact that the price of crude is down a good del during past months. If the company has speculated that that price would increase and has bought substantial quantities on that basis a big crack spread could possibly result in a loss instead. We have to see the numbers for the current quarter and what all the stored crude sells for once refined to get a better handle on the situation.
If future earnings per share come in at a much lower level than expected on the basis of the second quarter it will take a lot longer to pay back the debt that is in default. The uncertainty in this respect probably wiighs on the pps. Generally refiners are regarded as being in a sunset industry which results in very low multiples. If I remember correctly RD not long ago mentioned an example of that from Europe. It may also matter that this company is still on the otc which does not seem a good place to be right now. If there has been heavy naked shorting in this stock this could have had a strong imåpact too. Thus there are lots of reasons why the pps is so low in relation to earnings per share so far this year.
RD The name New York is intriguing right now. There is a stock exchange located there...
RD I thought you would have done that in 10 seconds or less...... BDCO does not exactly look vbvery promising these days. I thought you would have expected your investment friends to be very flush with cash before they sued HERB.
The same sort of thing happens again and again and again.....
RD It will take some time before we have lots of tradeable shares in CC.
RD That was faster than I had expected. I have taken for granted that it will be a one-off distribution. The value of the shares would be equal to cash dividends for more than one year. Once ITUP gets a regular listing on a stock exchange it will be possible without a prodblem to start paying ordinary cash dividends.
RD Thanks a lot! I still assume that the shares we paid 15 cents for will still be converted into shares in Cow Capital that others pay 10 dollars for.
RD I wonder how to interpret the role of IREEM LLC, which I have up to now taken to be a sort forerunner of Cow Capital. I had the impression that one share in IREEM LLC would result in one share in Cow Capital. Now it is called the sponsor of spacs. It is also stated: "20% sponsor capital". What does the 20% refer to? I also wonder what the sharecount of IREEM LLC is (just a rough estimate).
I get the impression that IREEM LLC (or its shareholders) will not just have a stake in Cow Capital but also in future SPACs. Thus there are several thinga that are not clear to me.
thirdman I t hink this is a complicated question. Your reasoning implies more or less that the refiner buys and refines the product largely simultaneously. If this company bought crude some months ago when the price was a lot higher than it is now there would be a loss even if the margins had improved somewhat in the mean time It has been stated that this company has crude to the tune of 20 million dollars that has not been refined yet. If that crude cost a lot more than today's price there may arise a loss when the refined products are sold.
It should also be taken into consideration that the market for crude oil is very negative today. One reason is the political proflems faced by the leader of China due to all the protests in relation to the worseing covid-19 epedemic.
The 19 million inventory. I have suspected that this relates to fuel oil than will presumably fetch the jhighest pride in the middle of the winter. Here is what I have just come across: "Current futures imply price premia for middle distillates, such as heating oil, will persist in the medium term. Heating oil-WTI spread averages almost $40/bbl of heating oil in 2024–2025, which is twice as high as the typical $20/bbl at midcycle. USGC heating oil spread is more than $70/bbl."
gosox Yes, It would be a new project. I myself prefer a less risky approach. In a best-case senario brinkmanship would pay off. In a worst-case scenario it could lead to bankruptcy. Usually I go for high risk but not in this case.
RD You may of course be right. Another possibility is that the plan is to produce oil for heatning during the winter when the price is presumably at its highest. I am against brinkmanship in t his industry. This company has enough debt already in my view. I go for a more conservative approach than you do in this case.
gosox New projects This is not a business with promising prospects. I am therefore sceptical about new projects. I would prefer that debt would be paid down to the extent that is required for cash dividends to be paid to the extent that is possible.
Enterprising specdulator I have the impression that you ignore the potential naked short position. With the more speculative stocks it is the possible illegal naked short positiions that are of intrest. The challenge is tjatusually one does not know of these are a figment of the imagination or not. I guess that is the case with tnis company as well.
It is encouraging that we get some information about the efforts to deal with the more or less defaulted debt. This information in itself should lift the pps somewhat. Moreover, we learn that we may get even more information in the time to come. This may make some purchase ahead of expected information that this company is out of the woods when it comes to its debt.
What happened today is the same thing that has happened again and again and again for many months now. Somebdy dumpes between 10,000 and 20,000 shares. Volume
19,449
gosox The 10K cannot be expected before the end of March.
RD That sounds exciting.
RD RD I am surprised about what you write. I had taken for granted that he was working very hard on the S-1 filing for Cow Capital. You don't mention that.
RD You can get more cheap shares rigfht now!
I find it somewhat surprising that the pps has dropped so low even if relatively few shares change hands. The sell-off yesterday was not so surprising but I had expected the pps to recover somewhat today compared with the closing price yesterday. Instead there are next to no buyers even at a substantially lower pps.
RD The Masala Capital you refer to is hard to find on the web. Those two words result in more than 5 million possibilities. "Omtrent 5 550 000 resultater"
Was it not rather in this type of situation that you stepped out some time ago??? I then bought almost 12,000 shares at an average price of $ 1.20. As far as I remember you stated that youi were back in at fairly close to the highest pps recently.
Few bids by market-makers
NITE 1.21 100 11:40
JANE 1.14 1,000 11:43
GTSM 1.14 100 11:43
CSTI 0.615 1,000 11:42
INTL U 0 11/11
CDEL U 0 11:42
ETRF U 0 11:42
OTCX U 0 11:43
karla I now have a feeling thatI may understand what you are driving at. I googled the definition of the company I bought shares in. It came up with: "IREEM LLC (DOS ID: 5687830) was incorporated on 2020-01-13 in New York. Their business is recorded as DOMESTIC LIMITED LIABILITY COMPANY." I cannt say that I understand what I own right now.
Since the Danish company Digishares is as far as I am able to understand the situation is going to play an important role for Cow Capital that is expected to become an important asset of ITUP it may be an idea for some of you to check the presentation of Digishares on Facebook. Here is a small part of the introduction: ""Tokenization is the act of representing an asset with tokens on the blockchain. The asset itself can be digital or in the real world. Representing a fiat currency such as USD with a token, USDC, can be viewed as a type of tokenization. Representing art (physical or digital) with an NFT, can also be viewed as a type of tokenization."
Check out this great article from Penning, featuring our CEO - Claus Skaaning, which explains the basic terms related to tokenization and what...."
I doubt that there is time for Cow Capital to start trading this year. "Typically, the SEC renders comments to registration statements on Form S-1 within 30 days after filing. Upon satisfaction of all comments, the SEC will declare the registration statement effective. Once the S-1 is effective, the company is obligated to file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K."
I hope we will aso get some information about reduction of the defaulted debt.