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Brainstorming .... thanks for your post!
People are faced with choices every day. KR's ownership position is not the majority, you need to choose the best horse in the race, and my choice is Rene.
Now is the time for the Avalon board to also choose a side, Jill and Mr. Barton also need to think about what would be best for them, as the old saying goes "guilty by association". If KR screws up what I believe to be a possible merger it won't be a happy day in Minnesota.
How could Mr. Barton be happy with the news he received concerning the IP. He is also listed on the board of Oiltek, folks that is a big blunder.
KR needs to take a long look at his options and negotiate his way out. The only card he has to deal is his preferred.
Just me, but I believe it is now time to stand up and be counted.
One needs to choose a side, we have four directors of record, who do you trust, KR, Jill, Doug Barton or Rene Haeusler. The directors hold a 44.64 position, not 51%.
I am going with Rene Haeusler, he holds a 2.96% position which would reduce the others to 41.68%.
Having viewed the SEC filings, I understand there are no owners of 5% or more of the outstanding shares of common stock. I also understand from the 10K report that the number of holders of record, of the common stock, to be approximately 1443. With that it appears the average holder would hold around 650K of common shares.
Having sent an email to the board today, I have made my XX,XXX,XXX shares available for Mr. Hausler to vote these shares as he may see fit. If he needs them I am sure he will email me for my proxy.
I would suggest that anyone who wants to choose a side, stand up and be counted, it doesn't matter how many shares you hold.
Mr. Haeusler’s email address is René Häusler r.haeusler@vtxmail.ch
Brainstorming ………. Do you think the Avalon management reads these posts?
One of the beautiful things about this country is the freedom, we have the freedom to say just about anything we want and do just about anything we want, just as long as we walk the straight line of the law. Sometimes folks walk outside that line from time to time and everything appears to be alright until they are caught. If you know you have walked outside that line and haven’t been caught, one day someone just might call you to task for that stray. As minority investors we take managements fiduciary responsibilities very seriously and so do the courts. Sometimes it takes a little longer for some to understand how seriously we value those fiduciary duties.
You might want to visit Avalon’s web page, you might think they haven’t made changes to the information for some time but they have recently. Look at the technology section, what is missing.
It is one thing to call management to task, but it is another to see if they respond. It appears they did.
So if you are in Avalon’s management and know you have walked outside the line and have just been taken to task, just on one issue that was discovered, do you think you would have the confidence to continue walking outside the line?
I think KR going forward will be a little more reasonable with his demands for his preferred holdings. I am sure there is so much more that can be shared with the board.
Just me but I purchased more shares today.
Brainstorming … Thanks for your post. You ask “the merger with whom, my best guess is the JV. You recall the JV announcement. I emailed LC few weeks ago, 6/22, he confined the JV was still in place. The Nevada filings was 6/13. This has to be a merger with the JV partners.
Do your own DD on the JV partners but here is some information I found.
With the JV comes Zacale Resources, here is some good news.
LARRY K. COSHOW
Mr. Coshow has more than twenty-seven years of petroleum landman experience, with the last seven years in managerial or executive-level positions at Chesapeake Energy Corporation. From September 1999 to August 2006, he was Land Manager and supervisor for three highly successful Chesapeake Energy land divisions: the Western Oklahoma Anadarko team, the Barnett Shale team and the East Texas/Louisiana team. He started each division, taking each of them from little or no staff to more than 30 personnel.
The last two years at Chesapeake, Mr. Coshow, as Executive Vice President—Land, was part of the executive management team with Tom Ward, Chairman and CEO of SandRidge Energy, Inc. (also cofounder of SandRidge Energy Corporation with Aubrey McClendon).
Mr. Coshow was involved in the executive management team that led SandRidge Energy to the most successful initial public offering in Oklahoma state history in November 2007.
He was involved in the acquisition of National Energy Group, which brought additional assets to SandRidge.
Now, the confirmation by Finra, I wouldn’t expect to see this anytime some.
I would think they will now merge the assets of the parties, establishing a new asset value going forward, increase the authorized to cover the value and support the “estimated opening stock price”,(this should also cover KR’s preferred), and also just as important establish shares to be used for the future.
By establishing a merger and new asset value,and book value of the merged company, this will allow Finra to review a new suggested opening stock price, as we all know Avalon today is undervalued. I would also guess that they will have a market marker line up to help support the new stock price.
We may see a real oil and gas company emerge, in spite of KR. Do believe LC wants to get back into the real game.
Brainstorming ..... thanks for your post. The other option, this is the setup for the merger. Think about the structure of a merger, what will happen next?
Brainstorming thanks for your post …. In your post you suggest that "the authorized capital will not change". The Nevada filing dated 6/13/2012 changed the authorized capital from 1 billion to 3.333 million shares. It may go back up, but it did change.
Why would KR do this? Why would RH vote for this?
If the authorized capital doesn’t go back up there will be no more RegS Deals of any size! Do you think the JV would want more RegS Deals, now! The 6/13/2012 Nevada filing puts the lid on the number of shares that can be issued today. Who wants to go to jail for selling more shares than is authorized?
Don’t be so quick to feel sorry for R.H.; he is a very smart man. And just as smart are Mr. Streetman and Mr. Coshow.
thewolf1 …. thanks for your post, your comment …… "Can't believe the SEC hasn't shut this circus down yet with all the complaints they received."
Why do you think the SEC hasn't taken any action against KR and the board? How many years has Avalon been a public company and no “published action” by the SEC. We do see SEC generated letters to the company regarding questions about their filings, but that is about it.
In my DD, I haven’t seen any shareholder action against Avalon. Why do you think that is? It appears, at least on this board, claims from disgruntle shareholders; I guess they were shareholders at one time or had friends and relatives that were shareholders. Why do you think these folks didn’t take action against KR and the board. Surely if you feel you have been wronged, one would pursue some action against the board.
Derivative suits are quite common and the courts have equitable powers and can remedy situations where majority shareholders breach their fiduciary duties to minority shareholders by engaging in oppression conduct. In my DD I haven’t seen any derivative suits and or actions by shareholders. Maybe those shareholders that would take this course of action are still buying shares at these cheap prices.
For me it has always been about the oil and gas assets, some claim they have no value, that’s OK if you think they have no value, don’t buy Avalon stock. In the latest 10K report, the Lincoln County Grace properties were reported to have a value of $67,565, how that value is assessed is questionable as we have paid a lot more for these properties than $67,565. Then the other oil and gas properties are listed at $1,049,514 net.
We all know of the eight different oil and gas properties as listed on the Avalon web page. There are four other properties that have dropped off the radar. Who knows the total asset count! One would think the board of directors would feel it to be their fiduciary responsibility to inform the shareholders of all of Avalon’s assets. I’m sure the JV has an up to date list of the Avalon oil and gas assets.
Just me but these assets have real value.
We now know that we have 927,297,330 shares outstanding. Today, so far, we have had 14,316,615 shares traded, 1.5% of the outstanding.
Doesn’t look like much panic, today I bought at the ask 1.8 million of those shares, at $.0003.
Everyone who reads my posts, I’m positive about my investment. Don’t have a problem buying more “at the ask”, if someone what’s to sell and get out, that’s their choice. If the stock continues to go down I will buy more, who knows, someone might be willing to sell at $.0001. I still haven’t sold any of my holdings, cost averaging my position.
I have done my DD and am comfortable today purchasing more shares, who knows what tomorrow might bring.
Lee6 thanks for your post. In my DD for Avalon I learned months ago that in May 2007 there was a 20 to 1reverse split. At that time there were 1 billion authorized as that change in the articles of incorporation happened in 2005, changing the authorized from 200 million to 1 billion.
What I found interesting in the sec filing after the date of the R/S, the authorized was stated at 50 million. The last filing which stated the 50M authorized was in the 10Q dated 8/19/2008 for the period ending 6/30/2008.
Than in the next 10Q filing dated 11/14/08, for period ending 9/30/2008, the authorized number reappears at 1 billion. No filing, press release, nothing, the number goes to 1 billion authorized. Why, because the articles of incorporation allowed 1 billion and that number was never changed legally. The SEC filings stating the authorized at 50 million were incorrect, looks to me like a breach of fiduciary responsibilities.
So what is different today, the articles of incorporation were change reducing the authorized common stock to 3,333,333 that is 3.33333 million shares.
We now have as of July 13, 2012, 927,297,330 shares issued of the 1 billion authorized. 300 to 1 means with the new authorized of only 3.33 million, we will have 3,090,991 shares issued, leaving only 242,342 shares unissued.
The key is the Nevada filings, why would you vote to increase the authorized from 1 billion to 3 billion, never file the legal change, than reduce from 1 billion to 3.333 million, which is a legal change.
Now the 10K, it looked to me that it was thrown together at the eleventh hour. Look at just one issue I found, page twenty.
Item 12. Security ownership of certain beneficial owners and management and related stockholder matters.
Look at the totals for all directors and officers as group 571,134,339 shares representing 44.64%.
When you add up the percent of ownership that number appears right, now add up the number of shares owned and that number is 671,134,339, or 100 million more than the 571 number. Looks to me Jill’s numbers are screwed up. There are numerous issues with the filing in my option, and it looks like it was just thrown together as if it didn’t matter.
Ok, now we have only 3.33 million shares authorized, KR could sell off the remaining 242,342 shares to raise more money, but based on the Nevada filing that is all he can sell legally.
For KR to sell more shares he will have to once again raise the authorized from 3.333 million to some higher number. What senses does it make to go from 1 billion, to 3 billion (which was never filed with Nevada) down to 3.333 million, if you intend to authorize more shares and sell more to investors?
The sense to me, is how I have described what’s happening, the third step is the merger, what is new to me now is how KR will convert is preferred, with only 3.33 million authorized and 3.09 million issued doesn’t leave much for his conversion so there will be some twist for him in the deal to cover his preferred position. My guess his 500K investment will be paid in stock of the merged company.
Glad to see the Ultrasonic Mitigation Technology disclosure in the 10K, page F-27. Thought this might kill the deal if it wasn’t disclosed. I bet the folks holding shares of Oiltek aren’t happy.
One important thing to remember; if everything goes to hell in a hand basket, there is Nevada Statues, title 7, and chapter 78.
From the stock price, looks like a little panic in the street, I purchased more today.
Step two did include more dilution, I thought it would be the 1 billion shares authorized, as reported it appears it be just short of that number. I need more time at run the numbers once again. Been busy at home and at the office.
Step two would include more dilution, that is why I purchased more shares, to maintain my ownership position, I used 1 billion issued as the max.
The real issue for me now is KR's position,can't imagine the JV will allow the 40% preffered position to continmue forward. KR needed more than his votes to move forward, who would agree to a 300 to 1 split if it wasn't going to make them more money.
Counting on the greed of the others that gave him control.
morodd thanks for your post, the 160K was reported early in the year it was the fossiltek property deposit. It has been in the SEC filings for some time.
My guess we will see this deposit back as they should be putting this property into the JV.
Step one, 10K ....... Step two 300 to 1 RS ...... Step three merger.
Kura …. Thanks for your post. Today’s market capitialization of Avalon Oil and Gas is $327K, with 655,315,455 shares outstanding and the last purchase at $.0005 a share!
One strategy when investors are building a position in a company like Avalon that is trending down, is to make lots of small purchases over time until you see the trend reverse and stabilize.
These smaller purchase help protect your position as you cost average your investment. In my DD concerning Avalon and as I have said before, I believe there is an orchestrate effort to drive the Avalon stock price down. If you have this belief, as I do, it would be dangerous to make large dollar purchases when the stock is trending down. Not knowing when the reverse will hit, one would want their average stock price to be as close to the current cost as possible.
I have decided that my ownership position in Avalon will not be more than 4.99 %. I could have developed that position with one purchase or I could develop that position as I am currently doing, making more smaller buys. If the trend reverses and something good happens I can always make larger buys to reach my investment goal of 4.99%.
How one invests in a company is a personal choose, this strategy works for me; but maybe not for you.
You know whats is interesting to me, the volume today.
I bought the 450K this morning at.0007, (maybe buying more this afternoon if folks want to sell at .0005)
Someone sold 1250 shares at .0005, that transaction value was $.625, sixty two and one half cents.
Thanks
Lee6 ... good afternoon... quick question for you ....your post;
Also recieved email from KR that they filed extension today for 10k. It should be out by the 14th. ....
You received a email from KR stating the 10K should be out by the 14th? And that was on the 2nd of July?
Brainstorming ..... good morning it has been awhile, would you happen to know if Rene is out of the office or traveling to the U.S.
MoroDD ..... did Rene respond?
You should, if you don't I will be surprised.
Morodd …… in my DD I have learned that Mr. Haeusler has had a few issues with KR and it is obvious KR marches to the beat of his own drum. Mr. Haeusler is a money guy and is on the board to watch out for the investors that he has brought to the table. Remember “he who has the votes wins”, regardless if they are qualified or not. I would think with the current stock price Mr. Haeusler and his investors are not “happy campers”.
When I tell you I do not know KR and or Jill that is the “gods” truth. Sometimes it is easier to profile folks when you have no personal history of them. KR is a banker with a geology degree; he should understand the oil and gas business but his “operations” experience is lacking in my opinion, and that is where Mr. Coshow will be valuable.
KR should be focused on producing oil and gas revenue and it appears that he might be “lost” in understanding why this is important. The subsurface data shows oil and gas reserves, if they are not producing the reserves are still intact.
Jill on the other hand, I haven’t been able to find the value she adds, if anyone can point to one thing she brings of value please enlighten me. Mr. Barton the other director must be a close personal friend of KR; my DD shows he has no experience in O&G. So now the board is made up of four, three controlled by KR and the fourth Mr. Haeusler!
It would be interesting to see the board meetings minutes. Avalon is a Nevada corporation, if you have researched Nevada law you would understand what it would take to look at those meeting notes.
When looking at Avalon history you will find a long line of O&G advisors, which is just one indicator that would suggest that KR doesn’t have a clue about running an O&G firm. His long history of mishaps in evaluating “people” also suggests he is very impressionable.
Hiring IR firms to promote the company really doesn’t work if management doesn’t help. One would think uninformed investors would jump in and we have all seen the frustration of folks when the stock starts its run then “someone” kills the run by selling cheap. Just me but I believe the kill was orchestrated, I think I understand the reasons, but believe Avalon management would see no value in a low stock price.
Now, why would the board authorize an increase from 1 billion to 3 billion and not file the increase to make it legal with the state of Nevada. What we do see in a Nevada filing is our 1 billion authorized decrease to 3.333 million. There is no news about the decrease, management doesn’t address the issue with shareholders therefore this decrease must have something to do with a “third party” corporate restructure. We did see a PR about a JV, I did get conformation the JV was still in effect and I believe if KR doesn’t screw this up we will all benefit from the deal.
OK now why the 1 billion to 3.333 million, my belief is the new restructured company wants to create a higher stock price for the company that will remove it from the penny market. If KR has his wits about him he should be able the sell the “Avalon Value” between 8 and 10 million. I think that number should be around 12 million. (Folks, in the O&G business 12 million is not a lot of money.)
I do believe that the focus of the restructured company coming out, will be to have a stock price at $2.00 to $4.00 a shares, that is why we go from 1 billion to 3.33 million. That stock price will create a new corporate environment; the big question is will the market support that price? We understand the value Avalon will be putting in, what we are not sure of is the value the other JV partners will be putting in. If Mr. Coshow is involved in the restructured company, I believe he will have a plan that the market will buy into and support that price.
Do the math on your own investment in Avalon, calculate the reverse, now times $2 a share, and now times $4 a share. Would you be better off with 300 times more shares at $.0007?
Now the problem, if KR screws this deal up we may find ourselves back to square one. Just me, but I am developing my strategy in case that should happen.
morodd ..... thanks for your post. Avalon director Rene Haeusler can be contacted at the email addresses below.
r.haeusler@tiscali.ch
r.haeusler@vtxmail.ch
Morodd ….. I might add …… when it comes to counting the 57%, those that hold a large position in Avalon might want to email, Avalon director, Mr. Haeusler.
moroDD ….. Rene is Mr. Rene Haeusler one of the directors at Avalon. I understand his election to the board was a condition that a large block of shareholders made before they would invest in the company.
Just a quick point to remember, with the Nevada filing, KR’s 37 million common shares will go to 123.33K (300 to 1) and his preferred will bring 1.333 million for a total of 1.456 million roughly 43% of the new authorized.
If KR puts this JV deal together he may end up with a board seat, if not and we continue down this same path I believe 57% of the holders will have had enough. As a group, large block holders should have their day!
As for my DD, that is my hold card, I did report what I found to the board. If management has an explanation, that would be good to hear, if not KR needs to be out!
Morodd … Good morning …… been on vacation since the 4th, no cell phone, no computers just family and friends.
In your post ….. ALPHA IR firm dumped us...lol...they don t want anything to do with ROGRIGUEZ...IR was hired so KENT could dump on us...
Did you have a chance to talk to the Alpha folks? I sent them an email about a week before vacation, no response and tried to call them, phone number from their web page, phone disconnected. Tried today still disconnected.
Still feel good about the pending deal, I hope the JV doesn’t back out! I have no information that they will but who knows with KR.
Before vacation, sent an email to Rene asking about the Nevada filing, he told me he would pass my question on to the CEO, he didn’t say KR. Sent Rene some DD I have found and haven’t shared with anyone, hopefully the board already knew about the information. Will be watching closely how they handle the information. It is going to be interesting to see how this deal plays out.
You are right there, lots of "ifs", anyone have any other ideas about what is going on????
MoreDD, if you are worried about the market for Avalon stock going forward; If the JV and Avalon become one and Mr. Coshow becomes President and CEO, which I hope happens, Mr. Coshow was involved in the executive management team that led SandRidge Energy to the most successful initial public offering in Oklahoma state history in November 2007.
I’m sure he will help find a market maker for Avalon shares.
Kura thanks for your post, I want to make sure everyone understands, I am not “in touch” with Avalon management, as I have said numerous times I do not know KR and or Jill. I do not have any inside information.
Just like now, I think Alpha Exclusive is no longer the IR firm for Avalon, why… because they don’t return emails and their published phone number has been disconnected. I could be wrong, but doubt it. They probably have had their 10 million shares of stock cancelled for non-performance and some folks may be P.. O..ed. Just my guess! From history, other IR firms have had the same thing happen to them.
The information I have shared is from my own DD, right, wrong or indifferent and I made my investments in Avalon based on this information. I purchased shares yesterday and I purchased more today. Today, when the ask went to $.0005; I put in an order at “ask” which part of it got filled. Appears right now, no one wants to sell at $.0005. Looking to buy more at $.0005 if anyone wants to sell!
I have not sold one share of Avalon to date. This stock is “undervalued” based on what I believe the asset value of the company to be. If the JV assess the Avalon assets fairly I believe my position is solid and I will be making some money on this investment.
MoreDD, I see your concern with the NV filing but I believe this action is the first step to clear the preferred out of the way to move the deal forward. (If I am wrong and KR still has a preferred position, then this NV filing makes no sense at all.) Remember, if this action is part of the JV deal than no one should be talking about it. They can’t discuss anything related to the JV until the deal closes.
If the current common stock holders, which should include KR now, get the full value of the assets those 3.33 million shares should be worth X dollars. (Again I think that number should be between $10 and 15 million, but I could be wrong) Whatever that number is should be the basis for the “base share price” for the next step.
The next step is the JV puts in their value; based on the “base share price” they will receive shares for that value. I would think we will see the JV putting in more value than Avalon, so I would not be surprised to see when the deal closes there will be maybe 8 to 10 million shares outstanding.
Remember to get shares you have to put in “value”. I would think we would see, maybe, stockholder equity of around $25 to $30 million, with maybe 10 million shares outstanding, making the stock value coming out of the gate at $2.50 to $3.00 a share. For us the key here is what “value” the JV puts on the “Current Avalon Assets”.
The next step is to determine what the reorganized company wants as authorized capitalization meaning authorized shares and par value. I would think the par value will remain the same and the authorized will increase up again to between 100 million and 200 million. This will be filed with the state of NV after the deals closes.
The next step is to have a market maker for the stock lined up, if the company wants to raise additional funding to secure say; a hundred million in cash; there will be market makers lined up to get that opportunity. If the company wants to use stock to buy oil and gas assets they will have shares available. Remember using stock to buy assets puts addition value in. I believe the market maker more than likely has not been approached as yet.
Just me, but I think the reorganized company will want the highest stock value they can get starting out. If Larry is the new President and CEO folks will be lined up to buy into this company. This company will not be a “pink” any longer.
Again, this is my speculation and I have no inside information concerning what is going on, if fact I can’t get the IR folks to email me, no surprise, nor have I seen an email from Avalon management concerning my question regarding the NV filing. No surprise there, as I am sure nondisclosures are in play and nobody involved in the deal should be talking about it.
Has anyone heard anything from these folks? You all have a really nice day, the 29th is tommorrow.
Here is my speculation based on my DD, again speculation!
KR converted his preferred to common; now he is in our boat, remember his preferred carried a $500K position. The company has around $400K cash or cash equivalents, the oil and gas properties will be considered in this deal at market value. Not sure if the IP and Oiltek will be a part of the deal or sold off, me, I would sell it off.
Company will move from MN to OK and we will have a new President and CEO, hopeful that will be Larry. KR will more than likely get a board seat.
Again this is my speculation, I do not have any inside information!
Would it make folks feel any better if this was defined as a reverse merger / takeover; the acquisition of a public company by a private company.
The transaction typically requires reorganization of the capitalization, surviving company, which will be Avalon. (JV)
I’m not selling bought more today.
The big difference here is the authorization number goes down, a RS with the authorization number staying the same is really bad.
OK what now, anyone have any other explanation of the NV filing?
If we stayed at 3 billion authorized, with KR converting his 40% to maximize his return, he would convert for 1.2 billion shares. With our outstanding 655M we would have only 1.144 billion shares to sell at $.0007; (current stock price), $801,279 of value. Can’t buy much with $800K; if he were to get $.0007 a share!
Another deadend for KR.
Anyone have another explanation of the NV filing?
You don’t have to reduce your authorized to do a reverse split of your common, which Avalon has done a few times.
I ... don’t... know .... My first estimate had a stock price of $4.50 after all the dust cleared, I found that hard to believe myself.
It is all based on the value we get for putting the "public company" Avalon into the JV. Remember each share represents an ownership interest in the company.
KR’s preferred has voting rights and $500K of asset value attachment, but they have to be converted into common stock to get ownership rights in the company, don’t you love the law.
The change in authorized shares from 1 billion to 3 billion didn’t happen per the state of Nevada and now we see the state filing reducing that 1 billion authorized to 3.333 million.
Just me,but I think KR has coverted his preferred into common and when he did we reached our ceiling,by law,of 1 billion shares. The JV probably said that is to many shares,so now we change the fully subscribed 1 billon authorize down to fully subscribed 3.3333 million authorize;a 300 to 1 reduction, with % of ownership remaining the same. So prior to the JV closing,we have all of Avalon assets tied to 3.33 million shares of ownership.
So now what is that Avalon "value" that will be transferred into the JV? I have always thought the oil and gas assets had a value of $10 million. The "public" oil company structure (shell)has a value, the tax credits have a value and the IP has a value. Is that value between $10 and $15 million? If the value is $10 million divided by 3.3 million shares; $3.00 a share and at $15 million; $4.50 a share.
We all know today, Avalon stock is undervalued and some folks have suggested that buying this stock could be a life changer.
OK,now the fun part, if today I buy 5 million shares at $.0007 that will cost me $3500.00. We have a 300 to 1 reduction I will have 16,666 shares after the reduction. If Avalon puts $10 million of value into the JV, at three dollars a share my $3500 investment (16,666 shares)would be worth $49,998 and if Avalon put $15 million into the JV at four fifty a share , my $3500 investment would be worth $74,997. I would guess if your owned a very large block it could be a life changer.
Ok now you apply what you think the value of Avalon might be and do the math. Makes this stock look real good , if what I have speculated happens.
Just me but not selling any of my shares.
Just me and this is my speculation.
We get Clippy’s heads up on the Nevada filing. I ask the IR folks about the Nevada filing in an email, easy answer would be there was a mistake, no response from them. Asked Avalon management in email, easy answer would be there was a mistake. No answer from them. Looked for additional filing to fix mistake, none. Remember we need to see going from 1 Billion to 3 Billion in Nevada filing which we have not seen.
Ok let’s play what if! Maybe Clippy found a great piece of DD. The filing goes from 1 billion to 3.33 million, basically a 300 to one revise. Why would KR do this? That would reduce the outstanding shares from 655.3 million to 2.184 million, leaving KR with 1.149 million for the preferred, with that, we would be 100% subscribed. No shares to sell to investors or pay the bills. Something is up with this!
Any deal for the company will have to be without the preferred, this removes the preferred and helps achieve a higher stock price going forward.
I believe the value in this matrix for the company is around 10 million dollars, roughly $3.00 a share at 3.33 miilion shares, no market price (share price) consideration, that would make the current (today) value of Avalon shares (655.3 M) $.01 and we are trading at $.0006 a share, big up side.
Ok now the JV, Avalon throws in the public company with value at $10 million;plus the tax credits big consideration, the JV partners throw in another 10 million of asset value, in a newly "structured" public company Avalon. The JV consideration would be equal to Avalons; shares; 3.33 million which the new board would authorize these shares and more.
Now we would have 6.66 million shares valued at $20 million ($3.00 a share) and I would think the board would also be looking at raising additional cash with a asset value at $3.00 a share. With new proven management, assets at $20 M and only 6.66 million shares issued. Sounds like a good foundation for a reorganized company. If the market likes the new structure and management the market share price could be greater than $3.00 a share.
Makes the current share price at $.0006 a real bargain.
Here you go!
My email
Fri 6/22/2012 12:50 PM
Good Afternoon Mr. Coshow,
My name is XXXX XXXXX and I am investor in Avalon Oil and Gas, MN. I have read in an Avalon press release that your company, Zacale Resources and Mr. Streetman have entered into a JV with Avalon.
I would hope that you could confirm with me that relationship does exist. I feel strongly that your involvement with Avalon would be in the best interest of the investors.
Best regards,
XXXX XXXXX
His response.
Fri 6/22/2012 1:53 PM
Yes I can confirm that a JV exists between the parties.
Larry K Coshow
One thing you can always count on and that in incompetence. Someone screwed up the NV state filing.
Don’t we love panic in the streets, I too purchased more shares at $.0005, if it goes lower tomorrow will buy more.
Read an interesting piece earlier this week addressed to KR in a post. Quote “I have no problem sparring with you, and I'd even spend the money to get you out of the market!” buying a few shares at $.0006 or $.0007 and dumping them at $.0005 how much does that cost?
Today and the confusion what a perfect opportunity to drive the stock down a few more points. Remember Avalon uses shares to buy things. Interesting how this happened just before the close.
Before anyone runs for cover you need to understand what’s going on! Look at the value being sold.
Thanks for your post, but think there has been a screw up by someone. The authorized capital number goes from, the change in 2005, $1,100,000 down to $103,333.33 with this latest filing.The par value of the preferred has always been $.10 and the common stock par value has been $.001. The common stock is selling on the open market for less than par value, if you can believe that, what a bargain.
From 12/27/2005 NV state filing:Previous Stock Value: Par Value Shares: 200,000,000 Value: $ 0.001 (this was the common) Par Value Shares: 1,000,000 Value: $ 0.10 (This is the preferred)
No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 300,000.00 (this is the old value)
New Stock Value: Par Value Shares: 1,000,000 Value: $ 0.10 (this is the preferred didn’t change) Par Value Shares: 1,000,000,000 Value: $ 0.001 (this is the common going from 200 M to 1 billion)
No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 1,100,000.00 (this is the new value)
From 6/13/2012 NV state filing:Previous Stock Value: Par Value Shares: 1,000,000 Value: $ 0.10 ( this is the preferred) Par Value Shares: 1,000,000,000 Value: $ 0.001 (this is the common)
No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 1,100,000.00 (this is the old value)
New Stock Value: Par Value Shares: 3,333,333 Value: $ 0.001 (this should be the common, I believe the number is wrong); Par Value Shares: 1,000,000 Value: $ 0.10 (this should be the preferred which didn’t change)
No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 103,333.33 (this is the new value)
again, the authorized capital number goes from, the change in 2005, $1,100,000 down to $103,333.33 with this latest 2012 filing?
Just me, but I have been purchasing Avalon shares since March 2011 and haven’t sold a share. My first Avalon purchase was at $.0075 a share and at that time the outstanding shares were around 468M. I buy small blocks to try and protect my investment. As the price continued to erode and the share count increased, I had my doubts about the company and started to do more DD as to what the cause and effect might be here.
With a new understanding I continued to purchase “larger” small blocks as the price continued to erode, cost averaging my position. Sure enough the share count continued to go up and the stock price down and would make most of my purchases on Fridays as that was when the speculators were cashing out, building my position.
One of the more interesting things I discovered, is some investors would sell at the close a few dollars’ worth of shares just to have the close price register down. One might expect to see that going the other direction but to drive the price lower…. More DD, I think a have a clearer picture now, and my current buys are larger small blocks.
I do own more than 1% of the outstanding shares, but less than 4.99%. I do plan on maintaining my ownership position but today will not purchase more than 4.99% of the outstanding shares. That could change if and when I see a change in the management structure.
For me it is the oil and gas assets, over the years I have seen small oil and gas companies grow to become large players in the market. What is the market cap this afternoon, around $458K, what a bargain!
Good morning ……thanks to Clippy for the post and heads up.
Last year, 2011, the company increased the authorized from 1 billion to 3 billion. You may recall in the 14C filing; this paragraph, “ The Articles of Amendment will become effective when they are filed with the Nevada Secretary of State. We anticipate that such filing will occur on December 20, 2011.”
Looking at the data from Nevada Secretary of State, that Clippy linked for us, we don’t find a 12/20/2011 filing. Before the reported filing by Clippy, we see the annual list being filed on 2/22/2012. And the only filing in 2011 was the annual list on 3/10/2011.
Another important statement in Avalon’s 14C filing; “ Amend Avalon’s Articles of Incorporation to increase the number of authorized shares of Common Stock from 1,000,000,000 to 3,000,000,000. The number of outstanding shares of Common Stock would remain unchanged as a result of this amendment.”
And then it says; “The increase in our authorized capital will not become effective until not less than twenty (20) days after this Information Statement is first mailed to shareholders of our common stock and until the appropriate filings have been made with the Nevada Secretary of State.”
I believe this filing on 6/13/2012 is the filing for the increase from 1 billion to 3 billion the authorized shares. How the 3,333,333 number comes into play I’m not sure as the increase, per the 14C filing states 3 billion and not 3.333 billion.
If this is not the filing for the 1 billion to 3 billion than the increase is not in effect and our authorized is still at 1 billion.
Not a lot of buying going on but I did buy more yesterday, didn’t buy at the close, I guess old habits are hard to break.
Folks need to read the terms of KR’s preferred shares, remembering as a preferred holding the value of these shares is only $500K, which after paying out first lean holders, these shares get paid next. That is why we don’t see any bank loans, the bank would be paid first.
After paying $500K on the preferred, the balance of the assets would be up for grabs and the court would establish an order of payment with stockholders more than likely the last in line. That is why it is important to understand the stockholder equity numbers and the real value of the assets, not the depreciated values. The market cap numbers have nothing to do with the real value of the assets and we all know what dollars we have invested and how that relates to our ownership position of the assets.
I would think, when the preferred get converted there will have to be greater value in 40% of the common stock than the $500K value of the preferred, and that value would be based on the market price of the stock after conversion. Also remember if these converted shares were to be liquated on the open market the holder will have to follow SEC guidelines.
What is the market cap numbers today around $458K, what’s the preferred value $500K. For me, I am protecting my investment purchasing more shares as the price falls, cost averaging my position. Anyone buying in today should be well protected.
Just me, but the preferred position gives management an incentive. What good is a 40% position in something that has no value?
I didn’t get a chance to read the one page document and not sure if I would have access, but it seems this filing is in regards to the authorized shares increase.
Not sure why they would call it a stock split, if a stock split is in play all holders will benefit, but doubt we will see a split.
I am hoping management is going to get their stuff together, big opportunity for them to put a stock buyback program into play, these shares could be later resold.
Avalon uses shares to pay the bills, low stock price for them is not good, unless they are buying back. Just with the Fosseltek deposit they could buy back 228 million shares of the 655 outstanding.
We may be in for a major rebound if they get it together.
More Avalon Hidden Value ………. When evaluating hidden value in Avalon look at the cash or cash equivalents numbers.
From the last 10Q report!
Cash $ 116,529, Accounts Receivable $ 29,627, Deposits $160,000, Receivables from joint interest $20,000 ($ 314,649, which $20,000 is deemed collectable) and Notes receivable long term $20,000.
These total $346,156.00, if the bad debt turns out to be collectable that number would be $640,805.
Current stock price $.0007, 655 million outstanding, market cap $458K, and Avalon has $346,156 in cash or cash equivalents.
These numbers are without the value of the oil and gas assets, just cash or cash equivalents, more hidden value.