I, too, have recently bought lots of cheap shares.
Like Greeneyedhawk, I have taken the opportunity to accumulate additional AMEP shares at the recently undervalued prices. Even without a single producing well, the AMEP leaseholding values would be worth at least $0.04 per share. Those of us who have studied the geology of the AMEP leaseholds believe that the posted 4 cent number is grossly inadequate. But for the nonce, it can stand as an isolated testament to the recent undervalued share prices.
The underlying value of the company – pun intended, with the 7000 acres of high-value and high-interest leases over the Barnett Shale and other strata – make the recent share prices a steal.
New or potential investors in AMEP should not concentrate solely on the known production potentials of the vaunted Barnett Shale. On much of the AMEP lease holdings, to get to the Barnett the drill holes must drop down through the Marble Falls and other potentially very productive pay zones or strata. There can be no doubt that the AMEP drilling crews have recognized these other strata that can be tapped, often even before getting down to the Barnett Shale. It’s not just the Barnett that factors into the AMEP equation.
All of this will be revealed in well production announcements sometime in the future. Yes, those of us familiar with the company – with its significant geological holdings, and with its in-house drilling rigs and crews – would have predicted and preferred more timely production results. But with the rewarding results that will come forward in ensuing reporting periods, in the coming year, the glacial development speed of the first wells will pale in comparison to the overall annual investment returns.
Yes, at a three or four cent share price, very few investors can show any current gains of any significance. But that’s a perspective to be held only by stock traders and flippers, not by authentic investors. Intelligently, AMEP should be regarded as a long-term investment, using discretionary funds carefully allocated for such investments. Personally, I don’t intend to sell a single share of AMEP until sometime in ‘08 or ‘09, with the majority up for sale perhaps several years after that, when the SP will be in multiple dollars.
Investors need to determine their return on investment (ROI) goals. Flippers and day traders aim for modest but continuing returns over long periods, dabbling in numerous stocks. Most of these, however, make very little and after a few months or years of trying to beat everyone else who also believes he’s got “the system,” they give up. A great deal of the activity in AMEP in the last year or so has been of this sort.
A number of us, however, have invested for the long-term, and know that in a few years (mark that, years, not days, weeks, or months) we will be recording annual (mark that, annual) share price gains in double and triple digits.
The crews have been working all summer. Let’s wait and see what will be announced.
And of course, all of these announcements will be enhanced by the shifting away from the present business development company (BDC) arrangement.
The corporate ducks are aligning, and soon will begin their ever faster march toward profound profitability. The ducklings have been very slow in getting to the parade step-off grounds. But they are there now, and the parade should soon begin. Those of us with 6 and 7 figures of cheap shares will be smiling from ear to ear, taking only a moment or two to quietly lament the many who played the game short-term and no longer own any feathers in any of the AMEP ducks.
My best to all who diligently examine and consider the remarkable assets (in all forms) of this company. Our day will come, the rabble and babble of the posted naysayers notwithstanding.
–Falconer66a
