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If this doesn't prompt and investigation nothing will.
Yeah, this looks like manipulation. A seven cent rise with less then 20K volume. Actually, the volume keeps changing. This is new.
No Christmas present from DEJ ...
"We've never had a day close below .59" Well, now you have.
You may be right, but I would think it prudent to at least look at a (if not plan for) RS if the share price does not rise above $1.00 and stay there. If they wait, it may not be an option. If they plan for it and it becomes unnecessary, they do not have to pull the trigger.
Paying for a lot of staff to do something ...
Listing issues are key at the moment. You are looking at no potential revenue or even positive information for months, nothing to bolster value if the deal is already factored in, and the longer we stay below a dollar the more likely it is to falling off the NYSE.
RS is an option but then people will wonder about the ability to sell shares. Yes they have money but they seem to be burning through it like a company with revenue. They still need to cut staffing expenses. Otherwise it still looks like a company doing things for reasons not associated with increasing shareholder value. This creates trust issues. No one will believe that they will not issue more shares to raise capital for pay and bonuses and dilute shareholder value if management does not make an attempt to act like a company trying to retain value.
Maybe, but it seems like if I was going to a meeting looking to give myself a big bonus I would at least have some news to use as justification for it. Seems like this was a bust.
My only question is, do I play trader and dump my shares now looking to get back in in the teens or do I wait it out. I know there will be a sell-off prior to the end of the tax year to take advantage of the loss.
Anyone have anything positive to say about this company?
Not much of a PR
Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ) ("Dejour"), an independent oil and natural gas exploration and production company operating in North America's Piceance Basin and Peace River Arch regions, today announced the results of its Annual and Special Meeting of Shareholders held December 14, 2012 at the Company's Vancouver office. The following resolutions were approved by the Shareholders at the Meeting:
1) Election of Directors
Shareholders re-elected Robert L. Hodgkinson, Darren Devine, Stephen R. Mut, Craig Sturrock and Harrison F. Blacker to the board for the ensuing year. In addition, Dr. A. Ross Gorrell, Richard H. Kennedy and Richard A. Bachmann were also elected as new directors for the ensuing year. Dejour welcomes the new Directors to the Board.
About the newly elected directors:
Richard A. Bachmann: Mr. Bachmann previously served as President/CEO of EPL LLC, an energy-consulting firm since his retirement from Energy Partners Ltd. in 2009. He was the founder, President and CEO of Energy Partners, a U.S. independent U.S. oil and gas exploration and production company. Prior to that he was President of Louisiana Land & Exploration, a prominent U.S. gulf coast oil and gas explorer and producer. He began his career with Exxon serving in many executive positions both in the U.S. and internationally. Mr. Bachmann brings over 44 years of successful oil and gas industry exposure to Dejour.
A. Ross Gorrell: Dr. Gorrell has over 30 years experience with both private and public oil and gas property exploration and development in Western Canada and China. Dr. Gorrell has served as director, officer and controlling principal of several successful oil & gas ventures listed on the Toronto Stock Exchange. Currently, Dr. Gorrell is a director and President, Chief Executive officer and Co-Chairman of Petromin Resources Ltd.
Richard H. Kennedy: Mr. Kennedy is a prominent barrister, solicitor & partner at Kennedy Agrios LLP, an Edmonton, Alberta based law firm focusing on commercial real estate, administrative and regulatory law. Richard brings his extensive relationships with senior North American institutional lenders and pension funds to Dejour.
2) Appointment of Auditors
The Shareholders appointed BDO Canada LLP as the Company's auditors for the ensuing year.
3) "Rolling" Stock Option Plan and Amendments to the U.S. Sub-Plan
The Shareholders passed an ordinary resolution ratifying the Company's amended 10% "Rolling" Stock Option Plan, as required by the TSX every three years, and the amendments to the U.S. Sub-Plan to comply with U.S. tax regulations.
http://www.4-traders.com/DEJOUR-ENERGY-INC-1409747/news/Dejour-Energy-Inc-Dejour-Announces-Annual-and-Special-Meeting-Results-15595918/
Does not appear the meeting is going to bring us any Christmas Cheer ...
Clearly others are not expecting good things from the meeting ... not seeing the justification for bonuses. Thought management would at least try to justify their cash payout from the money gained by diluting almost everyone else shares.
They are just being thorough attorneys. You never know which argument a judge may find convincing, and they only need one. This will be a good gauge on how the trial will go...
Never liked meeting on Fridays ... seemed like that day was picked to allow bad news to soak in rather than to rave about good news...
Management failing to follow through on promises has a direct effect on prices too. In this case probably more than NG prices. SP has not varied in conjunction with NG prices.
Whether it is bad luck or incompetence is irrelevant. If no one trusts that there is potential in the future that management portrays then they will find other companies to invest in. Excuses get old after a while.
The SP reflects the lack of trust. Management is going to have to prove that the company has potential with some actual results. The next quarter will be very telling.
If the patent is validated in court I think its value in the final sale could be in that range, assuming the expert is right on the lost revenue from the patent with T-Mobile. But you are right, it is all just talk at this point. Idle chatter to pass the time.
Lets assume your numbers are good. Even if we go with the low numbers. You have not included the sale of the patent. If proved valid it could be worth $250 million itself. Less 15% commission to whoever brokers the deal, that is still over $200 million or about a dollar a share in addition to the five cent payout you assume. A buck five is not great, but not bad.
When was the last time management brought a share of this stock ... or are they taking big Christmas bonuses in cash this year?
You have to separate the board from the management. Two different things. Management makes decisions that can be accepted by the board. Whether they were are whether they weren't is a question of corporate procedure, which, based of the nature of the election that finally threw this all back to the Delaware courts, is probably questionable at best. But much of that now is irrelevant. The receiver, being empowered by the court, can accept or reject any of the actions of management. At that point, whatever he says is pretty much legally binding on the entity.
Even if you assume that something management or the board did was unlawful, you probably do not have standing to raise the issue. There were a number of steps that needed to be taken while the company was still running. Certainly no one who is not a shareholder has standing (like t-Mobile or any other company).
Are you anticipating additional suits by the receiver?
Still think we need the trial to validate the patent, but if the settlement is large enough, I would not complain.
If that is the case (no share price increase but not much drop either), where does that leave things with the listing issues?
Interesting to see how they plan on cutting the payroll and other operating expenses for the next 18 months or so ...
With assets that have a book value of over $1.40 per share, I would say it is a better value than ... say ... ZMGD!
Some traders thought that was a great deal and I don't even think it is trading any more. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=79076103. Sunk money ...
I have been in an out of this stock since 98. I still have some shares I brought in the $4.00 range although most of my holdings are gone. I think it has potential in the future ... but far into the future. What we can expect in the near term is a reverse split and a drop in shareholder equity of about 30-40%. Pretty standard for a reverse split (actually, that is conservative). So while there is value here if you are willing to wait it out, it might be wise to cut your losses now and reinvest in six months. At least that is my plan.
JMHO
Thanks for your concern, but I think I will keep buying.
Dissolution under Delaware law:
"A dissolved company’s choices are set forth in Subchapter X of the Delaware General Corporation Law, the section of the corporate code that concerns sale of assets, dissolution and winding up. Section 278 of the code establishes a period of at least three years after dissolution during which a corporation is deemed to be “continued.” During the three-year period, a dissolved corporation’s directors can elect to follow procedures set forth in § 280 and § 281(a) of the code, or § 281(b)of the code."
http://www.youngconaway.com/files/Publication/50d987ea-3925-4d74-80c7-969b5e7e150d/Presentation/PublicationAttachment/395abd0d-b746-400a-8875-99c4230d6e3f/spring2006.pdf
"§ 278. Continuation of corporation after dissolution for purposes of suit and winding up affairs.
All corporations, whether they expire by their own limitation or are otherwise dissolved, shall nevertheless be continued, for the term of 3 years from such expiration or dissolution or for such longer period as the Court of Chancery shall in its discretion direct, bodies corporate for the purpose of prosecuting and defending suits, whether civil, criminal or administrative, by or against them, and of enabling them gradually to settle and close their business, to dispose of and convey their property, to discharge their liabilities and to distribute to their stockholders any remaining assets, but not for the purpose of continuing the business for which the corporation was organized. With respect to any action, suit or proceeding begun by or against the corporation either prior to or within 3 years after the date of its expiration or dissolution, the action shall not abate by reason of the dissolution of the corporation; the corporation shall, solely for the purpose of such action, suit or proceeding, be continued as a body corporate beyond the 3-year period and until any judgments, orders or decrees therein shall be fully executed, without the necessity for any special direction to that effect by the Court of Chancery.
Sections 279 through 282 of this title shall apply to any corporation that has expired by its own limitation, and when so applied, all references in those sections to a dissolved corporation or dissolution shall include a corporation that has expired by its own limitation and to such expiration, respectively."
http://delcode.delaware.gov/title8/c001/sc10/index.shtml
The settlement and the purchase of the IP needs to be seperate, otherwise Diac gets 28% of the patent which he would not get if it is not rolled into the settlement.
Another factor to consider is that there will not be a payout for at least two more years. I believe the law requires that the company stay open that long to allow any creditors to make claims against the company. The receiver will not be able to make final distributions to shareholders until that period is over. I am open to other interpretations of the law, but I am pretty sure that is what it says.
Putting them out as jury instructions is a nice way to avoid an interlocutory appeal
A court makes two determinations; a finding of fact and determinations of law. Finding of fact are generally not appeal-able; determinations of law are. So if the final ruling finds that, based on the facts T-Mobile took information it had regarding our patent and used them without paying us then they are screwed. The only way they can appeal that ruling is by claiming that the judge made a mistake in applying the law to the facts.
Also, the appellate court can only review the record. They cannot ask the judge why he did what he did. Therefore, a judge will do his or her best to explain ad nauseum why they did what they did. I am only speculating, but I think the judge realizes what is likely to happen given the facts of this case and wants to ensure any ruling he ultimately makes will not be overturned in appeal. No judge likes to be told they were wrong.
Litton, I think you are reading too much into only one part of the court case. If settlement was eminent then both parties would ask for a stay just like they did two years ago. In addition I can think of no legal mechanism that would allow the judge to hold off making one legal determination while continuing to rule on other parts of the case without some request by the parties or a determination by the judge that would get put down on paper and made part of the record.
I believe that the judge wants to get it right. He knows that T-Mobile's entire case will hinge on these definitions. If there is any legal (not factual) point of attack that T-Mobile will be able to use to overturn a ruling in our favor it is likely to be how these terms are defined and what they mean in regards to not just T-Mobile but the entire industry.
Some might call this a buying opportunity.
So your entire downward trend is based on ten days of trading? ... because other than that it has been trading in the same range you display on your chart since 2008.
You might want to extend that chart past the 9th of November. It has been trading since then.
Since OCT of 2009 this stock has fluctuated between 22 and 52 cents. In the last few months it has dropped to 12 and then rebound to 18. I really don't see that it is on a huge downward slide.
As for basis, you can be in and out of a stock. it depends on when you buy and when you sell. I have been in and out of HDY several times since 1997. I just sold at 1.18 last week and brought more DEJ. You don't have to stay in something all the time.
You might be able to get this stock for a penny or two less, but I am betting that in the next three months it will be worth more than I paid for it. That is the name of the game. JMHO.
Historical Prices for this year:
Date; Open; High; Low; Close; Volume
Sep 4, 2012; 0.14; 0.16; 0.14; 0.16; 195,100
Aug 31, 2012; 0.14; 0.14; 0.14; 0.14; 348,766
Aug 30, 2012; 0.14; 0.14; 0.12; 0.13; 132,690
Aug 29, 2012; 0.15; 0.16; 0.14; 0.14; 207,386
http://www.google.com/finance/historical?q=NYSEAMEX%3ADEJ&ei=4JeiULjhEfKK0QH-ZA&start=30&num=30
My average basis is .19. I am comfortable with my investment.
There seems to be a concerted effort to attack the company will little or no research into the company assets, operations, or management - the things that really matter with a small cap stock, particularly a hydrocarbon exploration and development company.
The book value of the assets is $1.44 per share (http://finance.yahoo.com/q/ks?s=DEJ+Key+Statistics). Operations are moving into the development stage of those assets. Management may have their failings -promising too much too soon - but that is factored into the price of the stock. If the company had to go chapter 7 tomorrow you would still make money. Not really seeing a huge downside here.
So your prediction after two quarters is 6.6 cents and mine is 25 cents. Talk again in March.
...time and patience indeed.
I wish I had the ability to buy more, but I am about out of dry powder for now. Still, I see good things on the horizon ...
... of course, if I were interested in more cheap shares maybe I should be talking crap about the stock based on its history rather than its future. Maybe I have it all wrong.
That is not a why, that is a what. I get what you are saying. I understand chartology, I just don't see it as accurate in small caps with limited exposure. If this were Microsoft or Exxon-Mobile maybe, but not this stock.
In any case, my personal opinion is that it has bottomed (or within a penny or two of bottom). Lets see what the future holds. In two quarters we can talk again. If the price is at .04 cents, which is where the chart indicates it should be, I will admit my failings.
A chart does not exist in a vacuum and this stock does not represent the price of rice in Japan. So why does it go down and down? What are the causes and how do they affect the price?
More important, what would cause changes in the chart?