Thursday, September 07, 2006 11:04:16 AM
Sure share structure effects pps, but there are examples of companies that have higher outstanding shares then BIGN but trade many times it's present price.
Take one of my favorites for trading: ERHE, 710 mill shares out or so, trades at about .40 consistently and I have made money when it hit the high .90's.
The secret: they have rights to potential major oil fields in Africa. And they are fully reporting on the OTCBB. That and almost 400 mill of their shares are locked up with major holders. Finally, their name has come to be KNOWN as an oil play.
Thus, I believe, BIGN can trade regularly in that pps area IF: the LOI is completed; a name change occurs that CLEARLY identifies itself as an O&G play; they then severely pick up the pace on the GRIMES wells and PR the results as often as possible and highlight CLEARLY all of their potential sources of O&G revenue in the future; and finally, get on at least the OTCBB and become FULLY reporting.
I am NOT pumping. I honestly believe that IF the above gets done ASAP such pps numbers are not outlandish. Investors WILL put money into such plays IF they have a clear picture of the plan, potential and regular and clear updates in Q reports. Obviously, we have a ways to go to achieve this. I choose to be in at the ground floor of this because I think the above COULD happen and if it does, not only do I make a bunch of $$$, North America is helped in the process. ANYONE who thinks the gas/oil crisis is over is truly deluded! This crisis is simply in temporary remission. Wait until Israel takes preemptive action against Iran in the future or even if the West embargos Iran and ALL oil flow stops from the region. I don't WANT to gain off tragedy, but folks THAT IS the reality.
So thats my rant and reasoning for staying put with BIGN at this time. The ONLY thing that could change that for me is if management proves to be unworthy of my trust. I can wait out severe growing pains.
All IMHO, of course!!!! Do your own DD!!!
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