Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Good question. If $35 million buys 60%, the remaining 40% is worth (4/6)x $35 = $23.33 million.
Divide that by the number of shares outstanding, around 172 million, and we get a stock price of 13.5 cents/share.
I'm not sure why the stock price has gone down on this news. Perhaps some people who bought in at 2 cents or under are looking to take profits.
Also, given the history of failed deals, some investors are probably waiting to see the first $3 million hit the Company's bank account before becoming believers.
Then again, judging from how few messages there are here, I'm not sure how many people are following this stock anymore. Management needs to get the news out to the street.
In the medium term, after the $3 million is in the bank and investors realize this is for real, the stock price should head to the 13-14 cent range.
Short Squeeze! Finally.
There is no other reason why the stock would rise 30% in the last half hour on relatively large volume.
There are no real sellers down here any more. It has been one shorter selling to another shorter covering. Now that the market turned around, they all ran to cover at the same time.
If I am right, as long as the market is up tomorrow the squeeze should continue. We should see $4 or more by weeks end if it's a real squeeze.
SEC shouldn't have issue with MILL.
Since the changes to the Ks and Qs were basically non-material, I doubt the SEC will have any issue with MILL.
NYSE is OK with MILL now, so no risk of delisting.
Just the lawsuits remain. And it doesn't seem they have much to stand on. Still will cost the Company a few million dollars to fight them if the law firms go ahead with it. But the firms may not want to waste their time knowing that their likelihood of winning is small. They are not going to win just because the stock price went down.
I wonder if MILL is going to sue streetsweeper for that defamatory newsletter.
I see $5 soon, and then higher as they produce more bbls/day.
No change to the assets as far as I could see.
Theie prior 8-K said their wasn't going to be, so if there was it sould be in a new 8-K.
Woops.
The last two are 2013. The September 8, 2012 is correct @ 90 cents/share.
3,600,000 warrants expiring on September 8, 2012 $0.90/share
14,037,185 warrants expiring on February 9, 2013 $0.40/share
576,000 expiring on March 8, 2013 $0.70/share.
Sorry about that.
Don't know. I would think they have 60 days? Starting from when it was originally due...July 15th?
You can find the latest here:
www.sedar.com
Click Search Database. Then, type in American Manganese. Look for the filing dated June 29th, 2011. Pg 17 and 18.
There are 1.4 million options that expire September 2012, exercisable at 20 cents. No options expire before then. Total of about 11 million options counting the ones just issued at 58 cents.
There are 2,137,797 warrants expiring on Feb 16, 2012, exercise price of $0.29 on average.
3,895,892 warrants expiring on June 16, 2012. $0.29 exercise price
2,290,174 warrants expiring on August 11, 2012 $0.25/share
3,600,000 warrants expiring on September 8, 2012 $0.90/share
14,037,185 warrants expiring on February 9, 2012 $0.40/share
576,000 expiring on March 8, 2012 $0.70/share.
Total of 26.5 million warrants.
If all the in-the-money warrants that expire in 2012 are exercised, the company will bring in $2.3 million. That could carry the company for a while, counting the $7 MM in the bank.
If all the options that are in the money are exercised, the company will bring in $8 million.
Counting the 90 cent warrants, over $11 million.
The Company may not need to raise additional capital, or if it does it shouldn't be that much.
Note that no warrants or options expire before February 16, 2012. Right now, it looks like the stock has consolidated for months and has eaten through the large exercise of warrants that expired in June 2011 and profit taking from the 30 cent placement early this year. With those shares cleaned up, pilot plant news and prefeasibility study results are likely to have a sizeable impact.
Latest financials from press release on 6/29/2011
http://www.stockwatch.com/nocomp/newsit/newsit_sedardoc.aspx?docid=2434840
Page 17 and 18 show the option and warrant strike prices and expiration dates.
Yes, the fact that there hasn't been an 8-K is important. It's not a Chinese RTO. I'm holding too.
But they are taking a very long time to file.... maybe to address the lawsuits and hope most go away?
If they file with little changes, the stock is likely to gap open up. That's why I'm holding and bought more down here. There may be no chance to get in after they release. I'm down big at the moment.
MILL may indeed have a serious problem with getting KPMG to sign off. Otherwise, what explains the length of the delay in filing?
Nevertheless, how bad can it be? At $2.15/share, I think all possible bad news is built into the stock price and more.
Unless they revise the value of the Alaskan property... then they could get delisted.
But if KPMG signs off on this, it could double in a week.
I just bought some more. Call me a gambling man.
Executive compensation over $7 MM. Plus personal use of company jet? Not right. This isn't Exxon. Thanks for pointing that out 7/10/11.
That's why the little investors are continuing to sell this even at these prices. He is not perceived as one of "us" anymore. And us little guys probably owned most of this stock.
But that's water under the bridge. If there's no revision to the value of the Cook asset, the stock is cheap. They need to bring more wells into production to regain investor confidence. Then this is a double by year's end.
???
Does anyone have any idea why MILL is dropping today?
The Amended 10-K is out with no difference in the cash flow that remained as of April 30. It looks like a lot of positive numbers should have been negative and a lot of negatives should have been positive. So they were reversed and the result comes out the same.
Am I missing something?
Are people afraid of a delisting from the NYSE? I don't see that happening. Maybe it's some funds caught on margin due to the overall market decline... selling out of this because it is perceived as risky?
What new lawsuit?
Surprising drop today. Any news?
Lawsuits against the company supposedly on behalf of shareholders. In reality it is ex-shareholders suing existing shareholders.
Management has lost credibility and needs to regain it. The stock price reflects that. And the silence on this board reflects that too. Has everyone who was here sold out? Are you out of this SevenTenEleven?
If one more piece of bad news comes out, I'm out of this stock. Otherwise, I'll wait to see new production and hope to recover my losses.
What can we hope for in the short term? Restated financials. Perhaps a conference call clarifying everything. Maybe MILL suing thestreetsweeper for the same amount those lawsuits will be seeking to recover from MILL.
Management has indicated that there will not be a restatement to the asset value of the Alaska properties, for whatever their word is worth.
Miller Energy Resources' CEO Issues an Open Letter to Shareholders
3:04p ET August 1, 2011 (Business Wire)
Miller Energy Resources, Inc. ("Miller") (NYSE: MILL) today issued a letter to shareholders from the company's CEO, Scott M. Boruff to address the recent blog on Miller, and the Current Report on Form 8-K filed this morning.
Dear Fellow Shareholders,
Since joining Miller Energy Resources, I have focused our talented team on executing our ambitious business plan. As a result of these efforts, Miller has experienced accelerated growth. As a public company, the facts of our success in growing our company have been well documented. Unfortunately, in the modern age of the internet, message boards and blogs allow for the rapid and broad dissemination of information on companies whether the information is factual or not. Last week, Miller became the target of a short selling blog that hoped to profit from discrediting our company. In light of the recent activity and concerns, it is important to set the record straight about Miller regarding our reporting status and process, outstanding litigation, and most importantly our Alaskan asset valuation.
Since I became CEO, I have been focused on building long-term shareholder value and reporting to our shareholders in a manner that is transparent, accurate and in compliance with all applicable laws, SEC regulations, and stock exchange rules. During our transition from a smaller reporting company quoted in the over the counter market to an accelerated filer listed first on NASDAQ and now on the NYSE, we have taken what I believe to be all the logical steps to support this growth, including electing independent members to our Board of Directors who make up a majority of our Board, engaging a "big four" accounting firm to audit our company, and devoting resources to develop and implement practices to enhance our accounting policies and procedures in line with the growth of our company.
While this transition has been time consuming and difficult, our objectives will be reached. Since we engaged KPMG, we have made several changes and restatements with respect to our prior quarterly financial statements and reporting procedures. While short sellers will point to this negatively, the truth is we are making necessary improvements despite the short-term pain.
This morning, the company filed an 8-K disclosing that the 2011 10-K was filed with the SEC on July 29, 2011 prior to KPMG LLP completing its review of the annual report and issuing their independent accountants' report on the financial statements, as well as the consent to the use of their report filed as Exhibit 23.3. A form of KPMG's opinion dated July 29, 2011 was inadvertently included in the filing, when in fact, they had not yet released the report. Accordingly, the Form 10-K is not a complete SEC filing.
This also means that we are not considered timely filed by the NYSE listing standards and expect to receive a letter from NYSE informing us of this fact this week. As disclosed on July 15, 2011 when we filed for an extension for our 10-K, we needed additional time to complete our financial statements due to increased revenues and operating expenses. In addition, we now expect that the audited financial statements which will appear in the Amended 2011 10-K will also contain revisions from those which appeared in the 2011 10-K that was filed on Friday, July 29th to include corrections to errors in such financial statements, including a revised consolidated statements of cash flows. We expect to file an amended Annual Report on Form 10-K/A for the year ended April 30, 2011 as soon as possible. The 8-K also disclosed certain previously disclosed restatements with respect to the first three quarters of fiscal 2011. Those restatements were made in the 10-K.
Importantly, when we file the amendment to our 10-K, the consolidated balance sheet and consolidated statements of operations included are not expected to change materially from those which appeared in the 10-K filed last Friday, and the third party reserve report which was used to support the book valuation of our assets as reflected in our 10-K is not in question and likewise is not expected to change.
With respect to our production and development, we are in a very strong position with approximately 1,500 BOE per day with a current net debt of approximately $17 million. We work very closely with our financial partners and do not expect any material issues due to the delay in our reporting of audited financials for fiscal year 2011.
In order to provide an accurate valuation of our Alaskan subsidiary, we have consulted extensively with independent third parties in order to fairly and reliably value those assets. An independent appraisal was performed upon acquisition, and we hired third party petroleum engineers to issue our reserve reports. The independent engineer who signed off on our recently completed reserve report for fiscal year 2011 has over thirty years of experience in valuing reserves.
We believe that we take a conservative approach to our valuation and production data in general as demonstrated by the following:
1. As part of the due diligence conducted for our recent financing, a
separate independent reserve engineer approved by our lenders
conducted its own review of our Alaskan PDPs, which is important as
one of the lenders' covenants is based on PDP. The valuation arrived
at was consistent with the PDP valuation on our current reserve
report.
2. In March 2010 and April of 2010 we announced the IP rates of the
West McArthur #5 at 578 BOE per day and #6 at 584 BOE per day. In
June 2011, West McArthur #5 and #6 collectively averaged 847
barrels/day during the month, which is consistent with what would be
expected using the decline curves from our reserve report and the
reported IP rates. We estimated the flow rates on RU-1 and RU-7 at
270 and 120 BOE per day, respectively, during the last year in our
investor presentations, which are posted on our website. Recently,
we announced initial production rates of for RU-1 and RU-7 at 350
and 250 BOE per day. For the first 30 days of production, the RU-1
averaged 371 BOE per day and RU-7 averaged 239.
3. The value reported in our books for the assets is lower than the
amount Pacific Energy paid for, and received financing for, those
same assets in 2007.
4. If you look at our aggregate well performance for the wells that
have been reworked to date in comparison to the assumptions used in
the independent third party reserve report (which was used as a
basis for the asset valuation on our balance sheet) you would note
that the wells have exceeded their projected performance.
5. The asset value has continued to grow as we successfully worked-over
a number of on and offshore wells and have successfully reduced the
P&A liability. At the time of the auction, the P&A liabilities were
estimated at $50 million by the Alaska Department of Natural
Resources (DNR) and as such required any new buyer of the properties
to agree to take on the liability. In agreement with the DNR, a
third party abandonment study was conducted and upon completion of
the study the negotiated required P&A funding level went from $50
million to $18 million, of which $6.8 million was included in the
assets we purchased, leaving a required P&A funding of approximately
$12 million.
I would next like to address the implication in The Street Sweeper blog that Miller is riddled with lawsuits. Any company our size will be subject to lawsuits in the ordinary course of its business and we describe the potentially material lawsuits to which we are party in our 10-K. Miller is currently being sued by two parties and believes that both lawsuits are without merit. As to the specific allegation regarding the CNX matter that Miller failed to disclose the reversal of the trial court's summary judgment in our favor, we did not believe it rose to an immediate materiality level of an 8-K. Furthermore, as noted in our 10-K, the CNX matter was recently dismissed on the motion of the plaintiff without prejudice.
What we find most disturbing in the attack blog is its use of divisive, deceptive, and manipulative means for its own short term gains at the expense of our shareholders. In contrast, members of our management team have personally put themselves on the line in guaranteeing our transitional line of credit with PlainsCapital Bank in December 2010, and not a single member of our board of directors or senior management has sold a single share of Miller stock since the Alaskan acquisition. I expect our senior team to increase their holdings in Miller after our blackout period ends. After the amendment to our 10-K is finalized I will be available to respond any of our shareholders' questions or concerns.
Sincerely,
Scott M. Boruff
I spoke with management today. The changes to the 10-K are supposed to be non-material. They are expected to refile shortly.
This necessity to refile has spooked investors, and in combination with thestreetsweeper article, has tanked the stock.
In my opinion, we are looking at a company with great assets and a smart management team, but the management is inexperienced at running a NYSE company. They didn't hire experienced accountants internally to get these things right.
I think this will be fixed over the next quarter, and we should not see these issues again. It will take time for them to regain the confidence shareholders had placed on them, and so I do not expect a quick bounce back in the stock. But if they bring wells back into production at the rates that we all have been told, this stock is a screaming buy down here. By the end of the year we could see new highs.
AThirdView