Value Microcaps Motherboard

[jaybird249]

JDO $3.02 $20 earlier is a BUY here's why:
-Tiny 15 MM float.
-Was $20 earlier this year.
-JDO growing sales 300% in last year yet trading at 1.7 forward Price/Sales compared to Natural gas Industry average of 4.0. JDO should be trading at MUCH higher multiple consistent with growth.
-JDO has properties in the elephant Wyoming field Pinedale, the same field exploited by Ultra Petroleum which has gone from $1 to $50.
-JDO went down from $20 because 2 initial Pinefield wells "only" have 500 Mcf/day of production (still very large wells) compared to 1500 Mcf/day forecast. Pinefield still has HUGE potential.
-BIG news rumored to be coming, possibly with Shell (another big Pinedale operator) to jointly develop Pinedale field..
- $27 MM asset sale will give JDO OVER $35 MM cash - possibe share buyback or debt paydown will be viewed VERY positively.
-30 day wash rule: Institutional buybacks from institutions who sold in early October will start this week
-Natural gas price skyrocketing again after pullback.
-JDO Will start aggressive winter season drilling program to capitalize on higher gas prices. Markets "forward looking" JDO will be perceived as "growth stock" again.
-JDO also has VERY large oil wells in the North Dakaota Midale field producing 100 BBls per day and plans to drill 10 more wells this winter.
-JDO is a takeover target smaller independedent oil companies with great assets getting snapped up left and right.