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Edited to say...this should've been tagged to Stupnik, not Kels.
Wow....a friend asked you to take a look at Hemi. You looked. Then you decided to take your own time and write a "definitive report" which you want to have the management of Hemi take a look at, before you publish it. And you have "nothing to lose", which several people here have interpreted as an indirect admission that you are not a stockholder, along with the lack of apparent ability to get a meeting with the management team - which a proven stockholder is able to do.
It has to be said....this smells waaaaay rotten. No normal person puts this kind of effort at the casual request of a friend. The b*llsh*t ain't only on the streets of the Stockyard following the afternoon cattle run.
I could be wrong, and I'm sure you'll find some flaw with my thinking, but here goes:
By paying a bit more than rock bottom prices (if, in fact, Hemi is), Hemi positions itself to get a better selction of land to lease. The landowners will be more eager to deal with Hemi because it works better for them both financially and with respect to the condition their property is left in. Hemi can then cherry pick the best offerings.
If you'll permit a reverse analogy....where I work we used to have Coke machines. The powers that be switched to Pepsi, because Pepsi offered them a larger percentage of the take. Unfortunately, the workers here hate Pepsi....so 15% of 100 bucks is less than 10% of 200 bucks. It's better to pay 15% of 1000 bucks than 12.5% of 500. In the end, you have more money.
Oh noes!!! Sputnik, I am convinced! Your overwhelming data has brought me to my senses, rendered me speechless! I am in your thrall!
I am going to renounce my faith in the greater workings of the Hemi management and leave the board forever! How about you and me blow this lemonade stand?
<shaking awake.....Oh, goodness! what an unusual dream!!>
OK. I can understand why more information would be soothing, if not actually helpful, to investors. I get it.
At length, various participants have expounded on the potential negative reasons that Hemi has not given out this information: the news is bad, the management is crooked etc. etc.
Consider the possibility that there might be some potential positive reasons that some information might not yet be shared. Go wild with it. What can you imagine?
I can imagine that releasing information about production might tip off competitors before Hemi has a chance to nail down some important leases. I don't *know* this, but it doesn't take much of a leap. Anyone else?
I guess the rest of us just didn't buy into your notion that Kansas farmers are the ones best equipped to provide that kind of financial analysis.
Our bad.
Why? I have enough class not to be ugly to people with whom I may disagree, even if they were to point out the obvious.
At any rate, surely when DD was done, the shareholders' meetings or lack thereof came to your attention. If I understand correctly, the management team has more shares than any other block of people. It is counterintuitive to assume they want their assests to be worthless. Perhaps you can enlighten me as to the reason that you think they would. I am willing to consider it.
Any "definitive report" would be an interesting read. I suspect the author may be awakening to the realization that some things that seem like facts are actually suppositions when examined very carefully. And touting suppositions as facts publicly can have adverse outcomes.
At any rate, when it comes to reports, caveat emptor.
Perhaps you can PR us a date?
Badge714, what a big man you are to spout obscenities in my mailbox, knowing that I cannot reply.
My point is legitimate. If you are unhappy with Hemi management, the appropriate place to work and change it is a stockholders' meeting, not engaging in the (possibly illegal) harrassment of leaseholders.
By all means, if one is a shareholder, one can work to have a meeting called. Perhaps you should spearhead that effort,if you are eligible to do so. It might have more significant effect than blathering about your "definitive report".
The appropriate place to do that is a shareholders' meeting, not a messageboard....or on the phone with Joe Farmer.
As someone who is interested in seeing my investment pay off, I surely hope Hemi management would use whatever means available to spank those who actively seek to interfere with business.
Y'all are acting like you're cooking bunny stew. Grow up, already.
What I took out of his answer to you was that he got what he needed, and is not willing to share the specific answers. Of course, I have been told numerous times that shareholders can get an audience relatively easily with the management at Hemi; prompt responses to my emails would lead me to believe that this is probably true.
Try emailing Mr. Anderson with your "real life" information, including your shareholder information, and you'll likely get an answer....
Thanks - I am dipping my toes in. It was my opinion that that assertion was probably true, when I got a reply to my concerns in an email from Mr. Anderson. Even though I do not have a large position as of yet, his reply was prompt and addressed my concerns.
Obviously, investing is a risk. I won't be investing my entire egg in Hemi, but I can play a little for now.
I do appreciate almost everyone's input when the input was made with thoughtfulness, either positive or negative, rather than acting like a sourpuss.
Could be. Much as we are often encouraged here to take a look at different parties' past actions to get a view of where Hemi might be going, I am sure that Hemi management is astute enough to judge potential report writers on their past actions. I would hope Hemi management wouldn't clutch a proverbial viper to their collective bosom, as the viper could do more harm than good.
It was my impression that people that could prove they are stockholders can schedule visits to the headquarters. Emphasis on the latter half of that sentence.
On the other hand, I doubt that most top management in publicly traded companies make themselves that available, so perhaps that information was incorrect.
I never did get an answer to this. Can someone tell me if there's been a substantial change in the way Hemi reports?
Perhaps someone out there with more knowledge in this field can give me an answer: on the average, what percentage of wells drilled are either duds, or produce so little that they're not economically viable? Not Hemi only, but the industry as a whole.
One of every 5? of every 10?
Is Hemi's percentage wildly different from the industry as a whole?
So you used this method when you chose to invest in Hemi, I'm taking it. Has something changed in the way they reported between the time you invested and now?
I'm pretty sure that the management in this company owns more shares in this company than most. It stands to reason that they, too, would want a higher share price.... Otherwise, they'd be shooting themselves in the foot.
I am sure that when Sputnik forwards his information, that the regulatory agency involved will take a look at everything and come to a conclusion.
Granted, I'm new to this, but I have trouble imagining that the company would try to defraud the state. Too many people involved to make it happen well and consistently, if what y'all say is true about the dipstick measuring. And based on the DD I've been doing about the management at Sputnik and plastipunk's innuendos of wrongdoing, I have trouble believing that either Mr. Anderson or Mr. Treiber would want to put themselves in a position of wanting to be audited for fraud. Of course, the last time that happened, they both were apparently found to be clear of the charges. So......(shrugging).
I got an email back from the CEO in response to my questions. I share it here:
Dear <edited out>
Thank you for the email and your observations. I do not participate in message boards and only get bits and pieces of what is being said. This is not a one time thing; it has gone on time and time again with everything from vendors we use to our industry contacts. I do not think these people understand or care about the ramifactions of their actions when they do this; many times people do not remember the shareholders name, but the name Hemi… Many times I do not feel like I can disclose who we are dealing with because our shareholders will call them and demand information, irregardless of any confidentiality agreements. I agree it's very stupid and very reckless conduct by these individuals and yes it is a handicap in a business as tightly knit as the domestic oil and gas business, and yes the same behavior does effect ALL our shareholders that do not participate on these message boards. It goes further and many of these people do not seem to grasp the fact that anyone that we do business with, potential employees and other people can google the company and start reading IHUB; they often shy away because they do not want to be subject to the past and ongoing treatment that current employees are subjected to by our “shareholders”. I suspect that is why the people doing this hide behind their keyboards and “aliases”. I guarantee you not one of these cowards conducting these posts would dare post their real name or phone numbers on a public board as they would do any potential employee. Yes I consider them cowards… why anyone would put any credence in them is beyond me.
You cite a very good example they can post all these unfounded rumors and allegations… and when asked to provide proof they are unable to, usually because A) it doesn’t fit their agenda or B) it doesn’t exist. Then the same people will be saying “why does the company do more disclosure, why cant it get things done faster, why doesn’t the stock go up?” The fact is these people are their own worst enemies with the way they conduct themselves.
For instance that post about a "shareholder" calling some oil company asking if they were the ones that bought our leases? Here is what COULD happen:
a) If he did luck out and contact the right company, they would be on the phone to me screaming that we breached the confidentiality agreement and could possibly sue us because of that. Of course if we were to be sued for something like that… it would be all management's fault and not the IDIOT that called causing the company AND shareholders to be subjected to the legal actions.
or
b) He keeps calling companies and the company says “Why are your people calling? Have you disclosed we are doing <whatever the caller wanted to know>?" Yes, I have had companies call and ask what is going on… because shareholders are calling and bothering them. The sad part is I may not know what is going on and don’t know what to tell that caller. So all affiliated look stupid: me, the shareholder, everyone!
I have my own ideas why they don’t sell their stock. I think most posting this nonsense do not own the stock, they are simply trying to build a reputation as an “internet stock guru” trying to build up a following… that has gravitated to the stock, competitors trying to limit certain things by attacking the company and the others are truly unhappy with the way the stock has performed in the last year and I totally understand because I myself am very unhappy with the way the stock has performed.
It's truly a shame I feel like I have to operate the company in such a defensive atmosphere, but that is just the way it is. Yes I still want the company sold by 2010 and personally think the sooner the better… but with the oil down so much and the state of the stock market, the mayhem with the investment bankers and all the other factors in the general economy, I don’t know if that would happen or not in this time frame.
Keith A.
Just a public apology here. I didn't realize I had a mailbox, with mail, till this morning. Please don't think I was ignoring stuff on purpose. Thanks to all for their insights and encouragement.
I am trying to learn about how pinks in general work, and of course, Hemi in particular. I do appreciate those of you who are trying to help.
I've got to tell you that there are some concerns I have. Because several of you said that the management at Hemi responds when approached by stock holders in a civil way, I am giving it a try with some of the concerns I have. I will let you know if I get an answer.
Now I didn't even know that, but if someone called my business up like that randomly, at the very least I'd tell them that they'd have to have some kind of a release on information document. It made no sense that a company of any type would give out information like that.
Sarchasm = the gap between a barb and the person who fails to get it.
I have said multiple times that I have no background in the petroleum industy, so posting a link to a site of that nature and magnitude is rather like giving a Chinese non-English speaker a link to Wikipedia, and saying "The info is there!"
I am more than willing to try to learn, and I have taken in a lot with assistance from Links by kelseyf, in particular. But help a sistah out with a little more direction, not an atlas of the world and a compass, to find a street address.
Let's pretend that I have little knowledge about petroleum drilling specifically, only a diploma from the university of common sense as it relates to general issues....
What is it in here that you think I should take particular note of? I'll be happy to get some learning, but those sites are rather large.
"Hello. I'm Joe Blow, a Hemi investor. Are you the company that bought its lease?"
C'mon folks.....would you discuss your business with an anonymous person on the phone? I sure wouldn't. And if I found out that Hemi management was giving out information to random people on the phone, I'd be leery of their common sense.
And let me get this straight: Hemi's PR can't be trusted, but some receptionist or functionary at a (possible) competitor can be, just because they said so?
All I'm asking is that we consider the possibility that the information might be wrong, because some people don't give out info on the phone.
"Neither of us knows, so why assert something we don't know to be fact?"
Back atcha. That's why I am careful to say that it is my understanding, rather than my knowledge.
"Hemi was also suppose to be committed to a "cards on the table" philosophy also."
Perhaps you can point me to other companies and their websites, so that I can make a comparison. As I've said, this is my first experience with a "pink sheet" company. What is standard disclosure in the field?
"I thought the assertion was that Hemi had already dealt with the repairs out of their own pocket? So why the comment about how long it will take to get it done. It's suppose to be done already!"
The repairs are done, but the process itself isn't finished until the claims are done. When Hemi has the money from the insurance company or a letter saying "no way" (which would almost surely end up in litigation, I would would think, dragging the process out longer).
"So what did Hemi do with all the down time they experienced during the floods. They had plenty of time to make drilling plans and have those plans ready when the flooding cleared up."
You have obviously NEVER been through a catastrophic flood. There is no such thing as "down time". I'm assuming that, if Hemi's experience parallelled the Gulf Coast's, that the first concern is waiting for the site to dry out enough to assess damage safely. Then lining up contractors at the same time everyone else is trying for the same thing. Battling for permits, fighting for a fair settlement from your insuror is a job in and of itself. And I don't know if the midwest had the same infrastructure problems, but it took months to get roads and power back up....things that significantly delay any rebuilding effort. Finally, plans require funding to realize. If Hemi used its reserves to fix the immediate problem, it probably needed to know how much money it would get from the insuror to know what projects it could complete.
"Many times the Hemi promoters have stated that they know things about Hemi that makes them secure in their Hemi investment, but they won't share this secret knowledge with the board/public."
Maybe I'm not reading this right. Are you stating that your fellow posters are either a) paid shills or b)trading with inside information? Please clarify. Which of your fellow posters are the "promoters"? This would definitely be a concern, if you can verify this.
All in all, I would like more information too. But we have what we have, and what our DD uncovers. For any of us, if it is not satisfactory, there are other options for getting out. But that's why I'm not investing the college fund...only what I can risk.
Again, Jagman, my personal experience on the Gulf Coast is that we're still dealing with it 3.5 years later. In fact, there was a major ruling from the court of appeals here very recently about insurance companies arbitrarily and capriciously withholding insurance payments that will have some major ramifications for the insurance industry.
Perhaps Hemi's counsel could look into it.
"...maybe a pink sheet like Hemi couldn't get such loans even if it wanted to"
We just don't know, either way. But it is my understanding that Hemi has been committed to the debt-free structure since the get go, so I'm inclined to believe the former.
"...what are the results"..."It didn't seem that Hemi was spending much on drilling when oil was at records highs either."
I'll be the first to admit that I am not, nor do I have, background in the oil and gas industry. However, being a denizen of the Gulf Coast, I have some upfront and personal experience in rebuilding after catastrophic floods and dealing with insurance/NFIP. It has been my personal experience that it takes mush longer than anyone thinks it should to get things back to the way they were, pre-flood. and even then, it isn't exactly the same. Perhaps someone here with related experience could give professional insight into what might happen to a well if water seeps in. Can it be remediated? At what cost? Does the product get contaminated or can it be flushed? How long does that take?
"It didn't seem that Hemi was spending much on drilling when oil was at records highs either."
Again, I have no oil and gas experience. But it seems to me that planning for drilling would take longer than a day's thought, or even a month. All of kelseyf's information indicates that there is a process that one must go through in order to be permitted to drill - Hemi management can't just wake up one morning and act like Snow White with chirping bluebirds..."Oh, what a lovely day! I think I'll drill a well!"
"This buying by management and friends and family ..."
I am not a stock broker either. But didn't Martha Stewart get tagged for something like this? I thought that was illegal, buying up stock because you have a person on the inside giving you information. Do you have knowledge of such an activity?
During the course of the last several weeks while collecting information to make a decision on whether or not I wanted to invest in this company, I came to understand that Hemi was debt free and worked very hard to stay that way. Given the fiscal crises faced by both individuals and corporations at this time due to taking on debt, it seemed that a company that had avoided the pitfall that has ensnared so many had management at the helm that perhaps had more foresight than others.
I also learned that the floods in 2007 were (of course) an unforseen expense that Hemi apparently did not have to take on debt to cope with; it was financially sound enough and had enough liquidity to do what was necessary to get back on track immediately without having to depend on a settlement from insurance. Again, this was a big plus. However, I can also understand that using capital to get back on track might put a dent in resources available to, say, build pipelines right away. Surprisingly enough, when I count on my fingers, I can make the leap that outlays from a flood about 2 years ago might have some connection to why some projects slowed down about 2 years ago.
I suspect that some of these projects will move forward when money is back in the coffers, and *IF* the cost of getting the goods to a buyer doesn't exceed the price of what the buyer is willing to pay. It has seemed that some other companies are slowing down business until the prices go back up...heck, even OPEC is working to cut back production to bring the prices back up. So I can't entirely fault Hemi for not spending money to drill if it would be losing money that way. But as others here have so eloquently stated, this is a long term investment, and I plan to treat it as such.
PS - and I'm also not going to put my child's entire college fund here or in any one stock. After all, what is the saying about "throwing money into a hole in the ground"? ;) This is mad money only.
Correct me if I'm wrong - and I'm sure someone will - but it was my impression that the insurance settlement has not been finalized yet. Perhaps when it is, and a concrete number is in play on that amount, you should revisit that suggestion.
But I have also been given to understand by some posts that one of the issues that is keeping the Collins from being viable is a pipeline, along with generally depressed prices for ng.
Perhaps setting some aside to use for infrastructure that would ensure availability to market at the time when ng goes back up would be an astute move, as well.
Big Mur, I appreciate the long post. I DD'd some of that, but I didn't and still don't see any evidence of unethical dealings that some have alluded to.
The dotcom collapses left a lot of people a little worse off and a lot wiser. The main thing I want to know about someone in charge is, did s/he LEARN from it, and is s/he likely to repeat it?
From what I've been able to gather so far, the answers in this particular case are looking like "yes" to the former and "no" to the latter. It looks like the CEO and the COO are being more careful at this point, and have another 10 or so years of experience to draw on. I especially appreciate the angle of being debt free. It's a hard lesson for many individuals and companies at this juncture in time, but one Hemi isn't having to be schooled in, apparently.
Again, this is just a small piece of the overall picture. moneymogul2b, I'm sorry this looks like a reply to you.
BTW - someone had a comment about the PR mispellings? Typically the staff at the service - Businesswire, in this case - is supposed to vet any release. If anything, I would be disinclined to trust the service. Maybe Hemi should change services or have a talk with the illiterates at Businesswire.
Big Mur, I think you misunderstood what I meant by the lounge comment. There have been several pointed comments about management's track record. I have been trying to do DD, and I can find nothing specifically about unethical behavior. I was asking for links to reputable sources documenting track records rather than just hearsay. I was not asking for discussion of said information, as that is not the purpose of the board, merely for links that some may already have, since my googling has not uncovered anything as of yet that would be considered shady or unethical.
I agree, if one has the time and wherewithall to be a gumshoe, that is a legitimate source of information to be considered and weighed with respect to how a company operates. However, with the type of innuendo I've seen, there should be written documentation.
TIA to anyone who has those links.
This is my last available post for today, so don't be offended if I can't reply until later.
I am not asking for a discussion of the principals, only a link where I can research to come to my own conclusions. I'm not interested in thinly veiled aspersions, only links to reputable sources that can give me insight on the people running this company. For the record, I am not interested in what the neighbor of a leaseholder in some godforsaken lounge in a podunk town in the midwest might've said over his fourth beer after listening to the jukebox when being dumped by his wife, which seems to come up on this board at regular intervals. Anyone have links to journals, papers, magazines etc?
Thanks again for the feedback. Thanks to Kelseyf for the different links to the Kansas drilling, to those with some basis information on "pinks", and others with informtion on the Tarrant County leases.
You suggest looking up the resume of Mr. Treiber. I looked on the Hemi website for bios on the principals, and they are not there. Can anyone point me to links with info on the CEO, CAO, and COO?
Reading this board and other sources of information are what is helping make up my mind. I did want to ask, and if it's not appropriate I'm sure it will be deleted, if I am understanding something correctly.
The flooding in Kansas in 2007 took a lot of wells offline. Hemi has worked to put the wells back online, and was able to do it with their own cash reserves because the insurance company did not (yet?) pay the claim. Hemi was able to do this without having to borrow money, and still remain solvent. Additionally, Hemi continues to remain debt free, at least according to the assertions of its CEO. At some point an insurance payment is anticipated, which will add capital to Hemi's reserves. Do I have this piece right?
Thanks so much for the analogy. It made the whole thing a lot more concrete. I've never "done" pinks before, so your information as well as the thoughtful posts of many of the other members here, both pro and con, have given me a start in my thinking on this.
As a potential investor, I have a question.
I was told about this company by a friend. I came here to learn more about it, and have been reading this board for a couple of weeks. There seems to be rabid supporters/investors of this company and people who claim to be investors who badmouth this company.
What I don't understand is this: if I felt that I'd made a bad investment, I'd try and unload the stock to the nearest gullible person and act like Tom Sawyer - whitewashing the fence is the most desirable thing in the world. I wouldn't be talking about how awful the company was and how inept its leadership was. I'd be doing that if I were a competitor or someone looking to drive down the price.
Can someone please clarify for me what is going on? Is this a quiet winner or a pig in a poke? And is it true or not that one can meet with management? I have relatives I will be visiting in the DFW area, and may check it out for myself, because frankly, this board leaves me wondering. There have been some aspersions cast that have not been substantiated by any meaningful evidence. Does anyone have anything concrete to offer?