Petron Energy II Inc (fka PEII)

[Feedthemonster]

If they R/S to .10 then this baby is going to tank to .05 ASAP. They simply don't have the revenue and won't have through 2014 to justify that sp. The only hope of making money for us longs now is that MM's manipulate a run (P&D) and we get out and cut our losses as best we can.

Let's assume FS gets there "eventually"...well per his own words he has 18 (now 19) leases x 30-50 (40avg)bpd. With a reasonable O/S this equates to roughly $25M in revenue annually (or $0.25/sh). So...we have been in the same position we are today since last Sept (2013) and we expect to get 10bpd from TX while Simons is STILL not online. Now...maybe with Simons and the S-1 renewed things speed up. However...it will be YEARS before all 19 leases are ready not to mention the cash must be raised for each new lease. Any dilution after the R/S on 7/3 is going against the future $25M. Therefore...even the long term view looks crappy...and it is VERY long term.

The only thing that saves us is a buyback...and I see no indication this will happen. Even if it does...it needed to happen before this R/S. Now PEII is a flip play the next few years.

I have wracked my brain trying to understand FS strategy so that it makes sense. I have even considered that he is trying to hoard the land intersecting a potential Keystone path thus forcing the U.S. govt to pay him 3x his assets. Yeah..I know...but something like that is the only explanatio for buying new leases with no existing production. More seriously he may well be playing for a buyout based on proven reserves thus why he keeps buying land and not pumping oil. Who the heck knows...I just know without these options (buyout/buyback) it is going to be a very long wait for very minimal gains IMO. I sure hope I am wrong but I suspect these shares go into the vault for a rainy day in 2016.