OK guys, yesterday was the big dump and today is the second wave for the people who were not available to sell yesterday.
Here is what we all know by now:
1. Company made bang with May 01 PR.
2. People invested in the company based on that PR.
3. Company hired a service company and leased more lands with more marginal wells.
4. Company will change to by fully SEC reporting company.
5. Company went and got third party evaluation to confirm the PR.
6. Company waited 4 days after their meeting with Gustavson tom release the report.
7. Company released the report and the stock lost half its value.
8. Company is in damage control mode releasing another PR to say we might worth more than that based on future moves.
Based on all the above moves and the reaction associated with each move I can honestly say the following:
1. Management is very unprofessional
2. Management lost their creditability
3. Company lost its creditability
As a result investors lost interest and many decided to move on to a more trust worth company where they hope not to lose money and actually make up for the money they lost here.
However, the company hiring the wells service company and leasing more lands and releasing PR about the SEC reporting and other damage control PRs. indicate that they are serious about their business and determined to make it succeed.
Obviously, they will need to do a lot of hard work to gain investor confidence back (Revenue and Accurate Daily production) and eventually adding THE VALUE they are talking about.
Question is, what to do now?
People who sold and still lingering here should move on to other solid and more established companies.
People who did not sell and are in the red should not sell for a loss but stick around and waited it out.
Everybody knows perfectly well or should know that OIL is peaking very rapidly and that demand is growing much faster than the number of refineries out there.
That is why Pilgrim and the like companies decided to get into this business and buy or lease any piece of land that may have any Oil and try to squeeze it out and sell it.
Bottom line is, they are a small starting company who is trying to make money but they need a lot of money to do it.
Reasons to invest in it:
1. Cheap with lots of potentials if successful.
2. The worst is over now and if the next moves are good ones the stock will move up and never look down again.
3. Management learned an important lesson and will never forget it.
Well, these are my thoughts and I am currently invested in this company and will continue to do so.
Hope every body has a good evening and good luck longs.
Value trader
