Houston Natural Resources Corp (HNRC)

[God_Father]

Do you want my two cents? Here it is:

A) CEO promised no R/S live in an interview for everyone to hear. He can't back down on this statement so its official. If he does R/S, I'd imagine he'd get slapped with a nice class action lawsuit. He is not going to R/S, period.

B) So now that I'm convinced no R/S will take place, here is also what I believe won't be taking place; DILUTION. Why? Because, diluting anything under 1 cent is essentially losing money.

Lets say the CEO were to dilute $1 million shares into the float at a PPS of 0.005. If he did so, he would raise his equity by $5,000. However, with no R/S, on June 30th, the person who bought $5000 worth of WNTR shares would now get $0.01 per share, which is $10,000 worth of Green Fund shares, which is also equivalent to 10,000 shares trading at $1. Even if the price were to drop the first day by 50% before the person sold, he would have made $5,000 in addition to what principal he invested into WNTR.

C) If you followed me so far, heres what I think the kicker will be. The float is currently 356 Million. Paying a dividend of $0.01 per share is equivalent to $3.56 Million. Thats a lot of money. Anything under a PPS $0.01 is ridiculous. Its a gift and the CEO knows it. He is probably just as shocked as I am that we are trading at these levels. In the interview he mentioned that he would do whatever it takes to raise shareholder value. He mentioned possibilities of "retiring shares, buybacks and raising awareness." I personally think retiring shares and buybacks are a definite possibility before the ex-div date. Thats what I would do. I'm not entirely sure he is going to go this route though, but it definitely seemed like he hinted towards it in the interview.


Regardless, $3.56 Million worth of Green Fund stock will translate to 3.56 Million shares trading @ a PPS of $1.00. Being that the Green Fund float will probably be something like 50 Million shares, it is not absurd to think that the CEO would do this. This is a great way to raise shareholder value. I applaud his genius. Being net income positive and sitting on $31 Million in assets is a hell of an accomplishment. The market will react to this. We are 3 weeks away, its a very smart play to load now before this thing shoots up to 2 Cents.


PS, doing an interview at stockguru.com is definitely making an effort to raise Shareholder value by raising awareness. I think he will try even harder to raise shareholder value.



Easy Money. WNTR