And SNRN has no earnings. They are losing money.

Sonoran Energy (SNRN) is an example.

SNRN has 115 million shares outstanding.

SNRN share price is .23.

116 million shares x .23 share price = $26 million market cap.

So SNRN has a $26 million market cap.

SNRN has $2.5 million in revenues.

$26 million market cap / $2.5 million revenues =

Price/Sales Ratio of 9

So SNRN has a Price/Sales Ratio of 9

Sonoran has $8 million in debt

Sonoran has $830,000 in cash.

And yet it still trades at 9x sales.

Having said that some high growth small cap oil stocks do trade at price/sales ratio's of 10.

Why did it drop from .90 to .26?

They had 45,000,000 shares outstanding

1) At .90 they had a market cap of $38 million
(.90 x 45,000,000 shares)

2) At .26 they have a market cap of $12 million
(.26 x 45,000,000 shares)

Their goal is to have 300 (BOPM) Barrels of oil per month by summer.

300 BOPM = 100 bopd

100 bopd x $60 oil = $6000 in revenues per day

$6000 revenues per day x 365 days = $2 million in revenues per year.

So if they average 300 bopm for the year they would bring in about $2 million a year in revenues. Add in an extra $1 million to be generous. So lets assume $3 million in 2007 revenues for them.

$38 million market cap / $3 million revenues = a price to sales ratio of 10.

$12 million market cap / $3 million in revenues = a price/sales ratio of 4.

The stock was too pricey. The average price/sales ratio for a microcap high growth oil is probably about 5-7.

That is why the stocked dropped from .90. It got way too far ahead of itself even assuming they reach $3 million in revenues per year. A price/sales of 10 is a bit high.

Now the stock is at .26 which gives it a price/sales ratio of 4. That is more in line. But even that is looking forward and assuming they will get to $3 million in revenues which is a big assumption.

Do I think they will get to $3 million in revenues? Probably not. Probably a little over $2 million imo. So calculating price to sales ratio and assuming future 2007 revenues of $2 million =

$38 million mkt cap/ $2 million revenues = price to sales ratio of 19.

$12 million mkt cap/ $2 million revenues = price to sales ratio of 6.

Oil stocks work differently because there is an underlying asset in the ground. Once production numbers and reserves are known the stock and the share price will react in kind. Until then the stock is more subject to the mm games. With every well that is announced and completed there will be a corresponding rise in share price and a new base will be formed. HMGP and TGLEF were perfect illustrations of that.

ETRD is usually low on the ask. Plus they have restrictions on the stock. I know some people who bought alot of shares on etrd when the restrictions were temporarily off about a month ago. Then after the large purchases etrade went back on restrictions shortly after. I hope Jerry and the boys blow them out with a great pr. imho

Tulsan I got to run now. Nite just moved to .027 on the bid. GLTA

Yes I noticed that also. I tend to be more of an oil guy though and am not really an expert on market makers but that was an interesting development imo. This stock and this company is going to be a big winner. Its not a matter of if just when imo.

Nite just raised bid to .026

Also a 50,000 trade went through at .0285

ok

I really dont know, these are the bids:

VFIN .028
UBSS .0275
Hill .0275
Nite .025

Nite and etrade on ask at .029

Nite on bid at .025
VFIN on bid at .028

It just means that someone was buying at the opening bell.

Why? please support Jerry Griggs and Regions Oil and Gas by driving as much as possible buying as much gas as possible. We want oil prices as high as possible. Take one for the team DFD lol.

If that isnt a conflict of interest I dont know what is. A broker should not be allowed to be a market maker also imo.

One mm just did, etrade. The very company that is also a broker and has an online trading restriction on the stock. A perfect illustration of the earlier post.

No problem. I am no expert on marketmakers or brokers but it sounded good to me. lol

P.S. Ragmuff,

ROI means Return On Investment

Thanks for posting that.

This was from another board fromn another poster on why a broker will restrict online trading in a stock:

Apparently they're using a loophole in everyone's client agreement to restrict online trading. And since they offer to still trade with a broker (over the phone), they're not completely shutting down trading unilaterally, where they might get in trouble with regulators. But killing online trading essentially cuts down 90% of the volume from that broker. So they can end up shorting these things to fill orders, then kill trading by restricting online trading, and cover when the stock drops due to a lack of buying volume which was created by the online trading restriction.

Thanks for the tip I will look into it.

Once we get production numbers, quarterly reports etc then that will increase volume even if there are still online trading restrictions at a couple of the brokerages. I didnt mean to imply that it was all because a couple of brokerages only take orders over the phone. But that certainly slows things down a bit.

And why isnt the buying pressure real big? Because a couple of the online brokers have put online trading restrictions on the stock which keeps the volume down. How convenient for the marketmakers. What a racket. I actually cant believe it is allowed. Someone needs to clean up the stock market.

What happens in 2008. Does S3 Investments get 100% of Sino? I am thinking of investing in this stock.

Just make sure he puts in .027 and not .27

Millenium I always use a limit order. So if the ask is .027 I would put a 100,000 at .027 limit order.

If it were me I would buy 100,000 at a time.

Try the 200,000 at a time and if it doesnt fill break it into smaller lots, imho. I usually just put it in at the ask but some put it at the bid and just wait.

Someone mentioned earlier on here that they never get filled with an all or none fill. So no. I wouldnt use it imho.

Yeah I couldnt believe all the rain they got. It definitely slowed things down. But finally things are drying out.

What they typically do is make it harder to buy and easier to sell so they can come up with some shares since they are so short of shares.

The weather has finally cleared in Oklahoma. It is supposed to be relatively dry for the next two weeks. Now they can get some things done.

Transglobe Energy (TGA) went from about .07 when it traded under the symbol TGLEF and went all the way to $9.00 about a year and a half ago. One of the members of Region's management team used to work for Transglobe Energy. And like Regions they were a growing company with no debt. They are using a similiar business model here imho. It wont happen overnight though and it didnt happen overnight for Transglobe either. With every well that was put on production the share price moved and the same will happen here.

These guys are living on borrowed time. When Regions releases a PR on production numbers on multiple wells then the stock will move.

DFD that is what I believe also. I have no proof but that was my thought. The mm's are trying anything possible to walk the share price down and entice people to sell but it isnt working.

Like at 10:18 AM when the price dropped to .024. That was actually a buy. The MM's cleared out the way and dropped the ask to .024 and someone bought 36,000 shares at .024 lol.

The last pr was good as it provides a nice overview. But what will make the stock move is when they release production numbers on each well that were mentioned in the pr. When will they release that? I am not sure. But I wouldnt anticipate it taking too long. Sometime in the next month. Maybe sooner.

And etrade is sitting on the ask at .027.

luckydude sorry if I came across as rude. It wasnt supposed to be that way. Too much caffeine lol.

Yup, with the beginning of pinksheet and OTC short reporting there has been an unusually large number of instances where brokers (etrade, Ameritrade, Scottrade, Schwabb) have started restricting online trading in either buying, selling, or both. Because someone is caught with their pants down and dont have enough shares imo. Not to mention naked shorting.

One other thing. The wells that Regions are drilling are higher impact wells than the wells that some of these other tiny oil stocks are drilling who release PR's every week. When Regions discloses what their production is on various wells that are drilled and it is compared to these other little oil stocks that many are following, Regions will blow them out of the water. These companies that are releasing PR's every week are drilling very small wells. You will see this once these other companies start disclosing their production and revenues. They are not all they are cracked up to be.

Luckydude I know you werent asking me but I am going to respond anyway. First of all, are you a trader or an investor? Are your friends traders or investors? And have any of them ever invested in an oil stock?

The reason I ask is too many seem to have unlrealistic expectations with regards to pr's. It is not uncommon at all for an oil company to go two months without issuing a PR. It happens all of the time. In fact one pr every one to two months is probably the norm in the majority of oil stocks.

Oil stocks take time to develop. It takes 6-8 weeks to drill a typical well and get test results. So these things do not happen overnight. MNbean was right. This is a buy and hold. People that are watching this stock minute by minute and hour by hour are in the wrong stock imo and need to be much more patient. By this summer things should be proceeding very nicely.

Jerry has said he will release no fluff PR's. As someone else said they aint pumping because they are not dumping (stock).

If I had to offer an opinion on Jerry, he is probably shellshocked at all of the handholding and babysitting that is required from so many of the people on this board following this stock. That is not normal. Maybe Regions should open up a daycare center. They would get plenty of revenues from many of the posters here. People need to be patient. When the company has something to say that they can say they will say it. Too much rampant speculation which can only lead to headaches.

The company has made a tremendous amount of progress and they have disclosed plenty of information in past PR's if anyone bothered to read them. In the lastest pr they disclosed they have about 800 acres West Texas. They have 4 active wells in Oklahoma thus far, and have multiple leases in Oklahoma. The pr provided plenty of information for those that know anything at all about the oil business. The company has much more going for it than many of these other small cap oil companies that are constantly pumping out bs pr's with their tiny little wells that dont amount to anything.

We need fewer traders. The fewer the better. They only create headaches with their shortsighted, myopic view of things. I dont think Jerry should be catering to the daytrading crowd and I certainly hope he never does.