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"Never knew a company which upgraded to next level exchange after such a 20:1 R/S." Now you understand why we think there may be something special going on here. I've go to admit I was disappointed when the deal didn't go through a couple of years ago and have been skeptical much longer than that, even though they did get the pipeline acquisition done. Back then I think I remember they were just going to merge with the company they acquired the pipeline from and pick up a few wells, after they got the IRS lien removed. If they were worth a half a penny back then I'd think this would be worth two bits even though the dilution has grown so.
Remember share price is based as much or more on the future value of the company as the current value. Oh, and reserves in the ground, while figured at a discount, are counted in the value of an oil company.
Give them a couple of weeks to complete the transaction. No news til then. "A summary of the reserve study and the purchase and sales agreement will be included in a Form 8-K filing upon the close of the transaction."
Big read my reply to waterfall post 9697. The survey is probably already done. "A summary of the reserve study and the purchase and sales agreement will be included in a Form 8-K filing upon the close of the transaction."
"A summary of the reserve study and the purchase and sales agreement will be included in a Form 8-K filing upon the close of the transaction."
I don't seem to be able to find oilbull's post about another board we can post on either.
Big, that only works if the company is doing really well otherwise a reverse split can be a death knell. They need to be making money hand over fist before they even think of r/s.
Dogface, it is more of a reverse merger so that DNR can become a publicly traded company without the expense involved in an IPO.
It may be a while before we hear about the survey. They may not release it to the public until they have secured the financing.
A lot of "water" has gone under the bridge since 2002. They had no income until they acquired the gas pipeline so they had to issue shares to pay bills and salaries. Before the split they had issued about as many shares as are out now. At the end of the fiscal year in which the 20/1 split was enacted they were already back up to 33,000,000 shares. Tom Raabe at one point had at least 150,000,000 shares after the split.
.09 would not be a new high, it would be the highest we've been since we were last at ten six years ago. Would you calculate the high previous to the 40-1 reverse split by 40 to get what the actual high for the stock was? Tdameritrade says the high was .50 but I don't see any indication of the reverse split.
That's how I found out about ARETE 7 years ago. That was before I learned that legitimate companies don't do spam soliciting.
Tdameritrade doesn't let me put stop loss orders on penny stocks. If they did I'd have been out of this 7 years ago. Instead I averaged down.
1st congrats Big, 2nd thanks for beating to the reply to homole, 3rd I just noticed the stop sign on the IHUB board is gone. I guess one of my posts here was worthwhile.
Crumbster, I knew that. I was just putting forth the recirculation of that tout as a possible reason for the ARET price increase yesterday.
Gordon, a friend emailed me a Porter Stansberry promo today. Here's an excerpt;
" Stansberry Report Online - 4/20/2006
Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world. It is more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction. In three and a half years of high oil prices none has been extracted. With this motherload of oil why are we still fighting over off-shore drilling? "
Maybe that has something to do with it. People looking for Bakken plays in particular and Rocky Mountain in general.
I appreciate the news releases. They are not fluffy, pumping PRs They seem to be concise and sincere. Somebody mentioned months without PRs. One stretch had to be for at least a couple of years without any news.
The history of this company is the reason they are short. They don't believe the new guys can turn it around. On the other hand the chances of any development stage company becoming successful favor the shorts.
I've been in ARET for seven years myself. Thus the reason I've been somewhat skeptical until now of the turnaround.
Teekay, what lured you from Interact Holdings Group and Renewal Fuels to make your first post at ARET?
"We expect to receive the report on Wednesday, March 16, 2011 for our final review. The reserve study will then be made available to the financing sources." Sounds like it might be a week or so until we hear that the deal is finalized. Better to hear that now than nothing all week and wondering what happened.
It was a rhetorical question that I didn't think would stay up long enough for anyone to read. Sorry, got a little bored waiting for the furnace repairman to come. Guess I'd better get to work now.
I meant on this message board.
Why is the stop sign still up when the OTC is quoting ARET on the QB?
Then why are the trades so far today at the ask?
I had a similar thought to tigre that there might be some buying pressure on Friday before the weekend in case the deal closing is announced by Monday morning. Combined with the refusal of almost all shareholders to stop loss yesterday on the 25% pull back and .09 to .10 might be possible. Depends on how many people want to be sure they have all the stock they want before the deal closes.
I think the first, most important news will be that the deal has been signed, sealed, and delivered. Until then we're not really an oil company. We were here two years ago and it didn't happen then. I realize now we are fully reporting, but the skeptics may be waiting to jump in till the deal is sealed. I think that could cause quite a jump in price.
I realize the day isn't over but only about 1/3 of 1% of the shares in the "float" stop lossed out. Most of the people holding ARET stock must really think it is worth more than 8 cents. That's 10 times my lowest purchase price. And no I did not stop loss on any of my shares like I should have.
Somebody slapped the ask.
This would be the second time. Wouldn't it?
Yeah, it's not like the acquisition news is late. We have 6 business days until it is late.
25% stop loss sell off. I was going to do that also, but what the heck, I've not done what I should so far.
The only value gained in a reverse split is if it takes the share price above $1 which helps get a company listed on a senior exchange, or the $5 mark below which many funds are prevented from investing.
If the proportion of the stock my shares represent is diluted by the issuance of new stock a reverse split does not alter that proportion. I still own the same share of the pie (total value of the company) I owned before the r/s. I just have fewer, larger, pieces.
So far I have not seen a reverse split do a company I'm invested in any good, including this one. If the company is doing poorly they are usually worse off after the r/s. The ARET share price just continued on down after its r/s. The only cure for an ailing company is new/good management that turns things around as is happening here.
Yes. I should have said unissued rather than new. Either way the issuance of previously unissued stock increases the dilution.
You have to also factor in that the deal didn't happen 2 years ago when it was first supposed to happen so there is probably a skepticism factor keeping the price down until the deal is actually finalized.
Oilbull, Royal Flush???
Humsafar, read post 9183 by Yukonking. What will be left for ARET shareholders is the value of the stock they hold after the value of the DNR and Tindal companies is added in. When those companies are acquired by ARET the former owners of those companies will not have a special section of ARET assets that belong only to them. The possible downside is the amount of additional dilution involved if the "other considerations" involves the issuance of new stock to the DNR owners.
Surfkid you beat me to it. I was going to answer humsafar that the main players/owners of DNR are now main players in ARET with a fair amount of stock coming their way. What they don't get paid in cash for DNR will probably be more than made up for in the price appreciation of ARET stock.
'Crumbster' "The "NEWS" we are waiting for is the drilling plan and how we get the $$$ to do do it."
That's why they are doing the independent survey, so they can get the money to drill. My hope is they get a loan based on the strength of the survey. I'd rather not see further dilution through a private placement.
panther9191 they've taken the reasonable bids off the table so they won't be automatically filled first thing in the morning before they can see which way the wind is blowing. One of my stocks used to go to .01 and 100 every night.
Oilbull, I think this is the calm before the storm of rising ARET stock trading volume and price.