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I'm guessing that someone got a margin call on something else and had to bail out of MOSH, or just got scared of themarket and bailed completely.
www.freerealtime.com
This was a win for MOSH, but it is the win of a skirmish in a longer battle.
These are still the early stages where Gibbs & Co are trying the easy and obvious moves in the case.
Things will get more interesting from here on. It will be interesting to see how things go tomorrow.
Don't be surprised if PXD gives up enought discovery tomorrow to at least give the appearance of compliance.
Having said all that I have bought more units in the Wife's IRA.
Very nice to see the close at .38 today.
Tell that to Texaco.
VP ultimately you are right. If we win the case, the court will award legal fee's to the trust and JPM will have to pay it's own legal fees. Until then, JPM can use bill the legal fee's to the trust. Right or wrong that's the way it is.
It is in my mind part of the strategy to starve the trust into non existance. No doubt at the time, it seemed like a good idea to JPM and PXD. And given that it took a very strongly motivated group of unit holders to bring this action in the first place, they came close to having it work out according to plan.
You missed my point.
I don't think that PXD will settle. The Trust legal team won't give them an option that they can live with.
I agree with you that this will go to trial or very close to it.
Sun Tzu points out that underestimating your enemy is a grave mistake. "Pretend inferiority and encourage his arrogance."
PXD has hired a talented legal team. They are willing to spend serious money on defending this case. I don't know what the outcome will be. I have bought units in hopes of a sucessful outcome. There will be heartache before this is over, even if it ends in our favor.
LP
Your logic doesn't make snese. It is cheerleading.
You defend a case based upon the exposure. In this case the plaintiff asks for 1.2 Billion $ plus damages. No matter how strong or weak the case is, the potential liability is huge for PXD. They are acting and defending as they should.
As many others have pointed out, anything less than a complete win will expose the Mgt. to serious consequences.
The only way that PXD can settle without serious grief to Mgt. would be to settle for a few million and claim that it was cheaper to settle than defend. We know that this case won't get settled for a few million.
If Mgt. were to give the "worthless" well back to the trust, it would be tacit admiossion that they engaged in illegal behavior. They can't and won't do that.
Either that or he is actually a three legged stool.
thank you for this post, now I understand.
Volenspros, Thanks for the response.
So you think that Woodside had enough info in advance to determine that this was not a legit deal.
I guess we will find out what the courts think in due time.
The paper trail developed during discovery should shed lots of light on that question.
If they really did have their hands in the cookie jar, they will get slapped pretty hard. If not, it is as you say, "it was found in your car." Either way they probably have some liability, the question is degree.
Someone please explain to me why Woodside is more than a bystander in this situation.
I understand that they have a contract from Pioneer to drill a well on behalf of the Trust.
I also understand that it is thought that Woodside failed to check into the legality of the farmout from Pioner and that is what makes them liable in this situation.
Is that is the current thinking?
I guess I don't understand why people think that Woodside would have to check further than to find out that Pioneer is the legal general partner for the trust and is empowered to make decisions subject to the trustee's approval.
Woodside has no access to the agreements between the trust and the general partner nor to the details of that relationship.
There must be something here that I am missing.
I do understand that when you file a lawsuit, you file it against anyone and everyone remotely connected, that allows you to do dicovery in all of the nooks and cranny's. So I can understand why they are being sued. I just don't undrstand why people think that they have much if any liability.
I picked up some more shares @ .30 today.
Now back to 90% of what I had.
Will be buying more in a few weeks.
Cap'n, I don't know how much more these investors can take. They'll blow any second.
Spoken in the accent of Scotty.
In addition, I expect the defense to throw everything they can against the wall and see if anything sticks. They have little to lose doing that. If they get lucky and something sticks i.e. gets ruled on in their favor, that is little bonus.
This is a potentially very expensive case so the legal fees are not an issue compared to the costs of losing.
I suspect that one part of their strategy is to simply out spend our lawyers. As I understand it the Mosh lawyers are on a contingency fee, but even so, they probably don't have as deep pockets as Pioneer. So I'd expect the defense to try to use up as much of the MOSH teams resources as they can prior to the trial date.
If you think this their last hope you greatly underestimate the talents of the defense lawyers.
This will be one of many things that they will do between now and the trial date.
Lest you think that I am being negative, I have bought back almost all of the shares that I sold and will be buying more in the future.
Please undestand that this is not a sure thing. Whenever you go to court the issue is in doubt until the trial is over, and then there may well be appeals.
Remember, high Dollar lawyers got OJ off.
That filing is an 8K. No requirement to mention lawsuits unless there is an award of significance.
It will be mentioned in the Q I think.
The questions are screened on conference calls, so it is no surprise that there were no MOSH related calls.
After my disasterous exit from MOSH, I was able to reenter today at .311.
I am not yet back to the number of units that I ulitmately want to have, but at least back in the game.
And glad to be back in.
Steady_T
Thanks for the information.
Rereading the 8k brought to mind a question that I don't recall seeing addressed on this board.
Why would JPM grant the Trust a credit line of $3,000,000?
If the wells were offline, revenues were and are minimal, how did JPM think it was going to get paid back?
Were they planning on seizing the assets in payment when the loan defualted?
Was the loan part of the snatch and grab plan?
JPM was in a very good position to evaluate the income of the trust.
There maybe a straight forward explaination for the credit line that I am unaware of.
Anybody have thoughts on this?
There may not be any "dry holes" in the Barnett, but there sure are wells that are non-economic and do not get into production.
The two reasons that I am most familiar with are excessive water production, usually due to fracturing into the undelying Ellenburger formation or very low gas productions rates.
As you move further West away from the Ft Worth, Denton line the formation becomes tigher and harder to get high rates of gas production.
Don't be silly. Of course there are secret govt. contracts.
Some are made public after the contract is completed, some after the contract is started, see the Iraq war and the support contracts, some never see the light of day except as a lump some fequently in another project.
Not from me. That's for sure.
Your welcome. I suspect it won't have any effect on the price tomorrow. Which means I'll have to buy back in at .45
I'm a big big boy. I can handle my mistakes. Not my favorite part of being as adult, but caca occurs.
I figured you folks would like to know what the weirdness was about.
I hoped to sell a few and buy back in at 10 to 15% cheaper in the next day or so. Still hope to, just won't be a profit involved.
read the tape
I am embarrased to claim responsiblity for the last minute price drop.
I entered a limit order for .36, at least that is what I thought I did, when in fact I entered .036.
The mm's did what MM's do when they find an idiot on the loose.
No games, no plots, just fat fingers.
That little typo cost me dearly.
Steady_T
Interesting that you should mention Exxon Valdez case and not mention the Texaco case also. The Texaco case is much more similar in nature and was resolved in Texas courts over a fairly short time frame.
As I recall the verdict and awards stuck. Texas juries are not sympathetic to companies that commit fraud and try to steal assets. The issues in this case are pretty clearly defined.
I am quite glad for the rulings. I don't for a minute believe that those motions are all that the high priced defense has up it's sleave. I'm more inclined to say that round one went to MOSH by two points. There is still a long way to go before the final bell. Still, if the price settles back down a bit I'll raise some more cash and buy some more units. If it doesn't, I'll keep what I have and smile a lot.
Good luck and good offence to us all.
TC
As far as I am aware there is no part of the Barnett Shale that is 12 to 17 thousand feet deep.
Just West of Ft Worth the BS is about 6800 feet.
I'd go with the lawyers told him to keep it quiet until the SEC issues are settled theory.
Which doesn't mean that I believe there is great news being held until then, just that every lawyer I know says, keep your mouth shut while there are negotiations going, especially with regulators.
Mike "WE" can't do squat. It is the lawyers hired by a small group of unit holders that are doing ALL of what is being done.
You aren't paying any attorney's bills are you ?
Most of us are along for the ride, not paying the freight, but reaping some of the reward....IF THERE IS ANY.
While the case looks good, there are no guarantees to anybody when you are involved with the court system.
Please let the folks paying the freight make the decisions.
The defendents have a highly skilled legal team who's stock in trade is pulling rabbits out of hats. Do not underestimate them. You do so at your peril.
I own units, I may well buy more. This is by no means a sure thing.
Steady_T
It means that the quality of the gas is good enpugh that it doesn't require additional processing as I read it.
That is all well and good except for one detail...This is being tried in Texas. Therefore, the way they do it NY really doesn't matter.
As any competent lawyer will tell you, he can tell you what might happen, what he thinks will happen, but until the judge rules and the jury makes it's decision you won't know for sure what is going to happen.
As a Texas resident I can tell you that the courts sometimes do some very odd things.
Steady_T
No steveo never did.....I was not holding my breath on that one.
I did give him a shot a double or nothing, but he didn't accept.
Court case set back another 49 days....AGAIN.
Mike. Since you are intent on defending yourself, which I'm good with, would you please disclose your trading activity on MOSH yesterday.
If you have nothing to hide, then that shouldn't be a problem.
If you chose to act on your own opinion and sold, did you do so before or after you posted?
After the error was corrected, do you buy back in if you had sold or did you buy additional shares?
In the interests of full disclosure, I didn't notice the activity until after most of the price had recovered, so i didn't get any of the cheap shares. Too bad for me. I did buy 3000 shares at .32.
Steady_T
Actually we are in a slightly stronger position today....The motion for immediate oral arguments was denied. That indicates the judge is less likely to rule infavor of the defendants.
Not a big thing, but still an indication in our favor.
Steady_T
I have several observations from reading all of this about todays activities.
1. This must be a very thinly traded stock for a few messages on RB and Ihub to cause the sort of price action we saw today.
2. The MM's were very happy to see the panic and amplify it by dropping the bid to catch any stops out there. It is an old MM trick. The deep V shape of the chart tells the story on that.
3. Nobody has stopped to think about how mistakes are caught and corrected. If Mike was indeed the first to call and got the incorrect info, the folks who gave him that info thought that they were giving out the correct info. Mike thought that he was given the correct info.
Only after people started to call and check did someone who knew bettter notice that the info was incorrect. The correct info was passed along to the court staff and subsequent callers got a different answer to the same questions that Mike asked earlier. No one lied, either time.
This is not rocket science.
If you make your investment decisions on info from a web board without doing your own checking, then you have no one but yourself to blame for your results.
In the real world Caca Occurs.
By the way, this is in no way different from what happened to Bear Sterns with rumors spreading that it was in deep Kim Chi prior to anything actually happening. The rumors resulted in a run on the deposits, which actually did put Bear in deep Kim Chi.
There was a lot of manipulation of the tape today.....there were 400K of cancled transactions that showed up on Alphatrade......Amazingly enough they were the two big trades at .08 of 165K each and a few others.
Can you say shake?
I have no idea what the price will be. I am a bit more skeptical of the certainty of the results from the courts.
I agree that there is a good case. But whenever a court is involved there are no guarantees of results, no matter how good the case looks going in.
The jury, if it gets that far, might not understand the case and award small amounts for example.
The judge might indeed find that the standing issue is correct and dismiss the case against PDX and Woodside, whereupon we would have to solve the trustee issue first before we have a chance to refile against them.
Or, we could win the preliminarys and there could be a settlement to our liking. We could wind up going all the way to a verdict and get the seriously big bucks.
While I like the odds on the situation and have bought a position to await the outcome, I don't see this as the certainty that many posters here do.