alexbh2285 Monday, 01/28/19 02:40:39 PM Re: Devo33 post# 25171 Post # of 25179 The whole point of what doesn't make sense is you don't take money and buy an asset to eventually dividend off income to "keep the doors open" (in your words). It's like saying we have limited cash but we are going to spend $800,000 to buy a house so that we have $5,000 in cash rental income coming in per month to keep the doors open - it truly doesn't make any logical sense - they should have just used the $800,000 or whatever they needed to run the business - not blown the cash when they needed cash - the payback period on any "real" investment is longer than the runway they claimed to be financing. Even if this were to spin off $400,000 per year - which I have gone into why it can't in other posts (just like you can't buy a house that will pay for itself in rent in less than two years or even five years - the returns are too high for the house not to sell at a higher price - this was a well-marketed asset and not one that a non-oil investor just happened to get lucky to find from an ignorant or naive seller) and even LEXG says it will be modest - they will have used 120% financing to make a 50% return investment (and 50% expected value investments do not exist other than in hindsight). The proof that this business was always a fraud is that they financed with death spiral convertibles at the equivalent of about 120% interest. If they were real they could have gotten reasonable financing via venture capital or via an industry (oil or other) partner. There were plenty of other red flags throughout their history also. Now the fact that they stopped filing financials should be the final warning sign to anyone who thought this business was legitimate IMHO.