Thank goodness someone like you came along here I was talking to myself for months. If someone injects $850,000 and acquires 17,000,000 units at .05 and with each unit comes a non-tranferable share purchase warrant that will enable them later to acquire common shares for .02 cents higher at .07 that tells me a financier likes that they see here. If not- they wouldn't be dropping in $850,000 of capital into this for nothing. This is dilution no doubt- but this company has been seriously diluting their shareholders into the dirt since Day 1 back in 2011. What's different about this company now is that if you were a common shareholder that bought in higher years ago and even earlier this past year you were going to seriously lose everything you invested. There is no doubt about that based on the way these previous deals were structured. Take a look at how many shares that have been dumped since Day 1...my team members were concerned with the amount of shares that had been doled out-so I directed them to start counting the daily share volumes since Day 1 traded back in 11' and we came up with some interesting information as to who we suspect has been cleared out and who hasn't been... regarding the selling of their shares-warrants in lieu of cash injected. This play is all about timing and thank god I wasn't in this earlier or I surely would have been emptied out of my investment dollars.
Now IMO we're at or near the very bottom and when you have financial agreements linked to PPS sells of stock given to financiers in exchange of cash injections you can kind of a get detailed idea of where this could go. Will the financiers later get the itch to sell later for less than .05 than they acquired it for? No way to know here yet but that will be played out later. I've seen many other financiers in the past in hundreds of other deals where financiers sell later for less than acquired just to recoup part of their original investment because the stock didn't appreciate and they needed their money back. Now whether or not deals are struck with MM's, the company involved and the financiers to move the bid and ask up is another thing. Sometimes that involves agreements that the company will do certain things to hire penny stock promoters to help move & juice the stock and increase their opportunity and profits. In this case the baseline will be $850,000 and a PPS of .05 and later potentially .07 if the conditions are right for the financiers. I'd rather be sitting under a dime and under .05 if I'm a shareholder or some person sitting on the fence. If you've been here all along your trying to average down which I believe you have been doing-good for you by the way!
Very rarely do companies stock appreciate from just penny stock investors finding companies and their stock all on their lonesomes. It's usually from penny stock promoters going hand in had with the companies that hire and pay them. Usually the rise in PPS has nothing to do with the actual business of said company no matter what line of business they are into. It's called timing and where you enter it at and where you stay at or jettison when it goes up. Longer you stick around for longer durations you'll see the spikes in volume and corporations release of PR's and their timing of certain events.
But at this PPS they produce decent of amount of oil and some gas I'm keeping my eyes on certain aspects of their business-but more importantly I am studying the the deals they cut for cash and what effect it has on major dilution which is a negative effect on common shareholders that do not provide deals like $850,000 of financing. We the common shareholders are in an inferior position to a financier who has given $850,000 to the company- that's the way it is- it's a legal contract attached to a financial mechanism.
But- what I do believe could happen down the road is that this will be manipulated eventually by the powers that be that are involved with these types of funding situations and they'll wish to raise the PPS up to recoup their investments and make perhaps hundreds of thousands if not millions of dollars. Let's be clear here if your the financier your not giving a company $850,000 because your a good guy and you like them. Your giving them that money to double, triple, quadruple it... whatever the skies the limit or it could be a 10-30% profit end game we'll never know. But they are not here to lose money and so the game is set up to make money. It's called timing and counting shares- which I consider close to sitting in Vegas and counting cards except this is legal.
Much rather be sitting here on the low end than buying in at $1.00 or .50 or even .25 losing everything to massive dilution through the years. At this point this company in my opinion has pissed and burned through way to much capital for the amount of oil and gas they are producing and the East Cape exploration has been a failure with no success. Problem with all of their issues of trying to start this company from scratch is that common shareholders lost everything IMO to their dilution upon them. Right now I don't feel like I'm a part of that previous shareholder dynamic of losing anything at this point- because I like I mentioned before I didn't buy in higher. But at the bottom...or it could go lower one never knows for sure. But by acquiring that many units at that price very bottom of the barrel it could go both ways for common shareholders. Do they undercut the .05 or do they raise it to recoup?
My thoughts are that there is another financier out there waiting to get involved with some other package of funding that will take a longer business partner approach to New Zealand Energy rather than just selling as many units as quickly as they can. US financiers are the Wild West anything goes- the more refined European specifically British style of merchant banking and investment is what I prefer. Which is more of a long time partner which will raise the PPS up a higher valuation to achieve several objectives.
The company has prospects I understand this but this also has everything to do with how this company finances it's business dealings which will in the end affect it's common shareholders with little to do with how much O&G they produce or sell.
