I want to make a couple of comments and then I have a question/concern. I have posted my comments recently on AMEP that I am not happy with the current silence or valuation.
Having said that, I think the company is using the SEC review, as it pertains to the BDC restructuring, to get its house in order. The basher will try to scare people with their lies and tactics with the SEC's BDC review. In my opinion, it is no big deal whether this is a BDC or an operational entity, other than clarity of reporting and consistency. The operational method is easier to understand and good for both AMEP and shareholders.
The bashers/shorters are using the company silence to intimidate and to create fear in the hearts of the investors. If you look at the company's assets (land, wells/revenue, rigs, etc.) and prospects alone, in a liquidation sales, you could easily get $.10 - $.15 per share, in my opinion. Compare this to the current PPS of $.03, you do the math.
Once the smoke clears, the cock roaches will take cover. Lets face it, such is life down here. Expecting high returns, comes with high risks. I expect land mines at this level of investing. If I did not see them, I would probably start to look over my shoulder saying, I must be in the wrong place. The bashers will try to say this is a pig with perfume, but such is not the case. This is a powerful, little company under the hood, granted with issues, that is holding a lot of aces. What we see now is a ugly body/chassis and not the gold under the hood. You cannot discount the valuable resources/attributes the company has, including no debt, near profitability, positive cash-flow, two rigs and 7000 acres of the Barnett Shale.
Here is my concern. Is this going to be the best story never told? This is a question for those people that know AMEP. If not for GEH and his excellent DD, this story would be unknown, at least to me.
I use to be in UPDA and I am not now. In my opinion, they are a fraction of the opportunity/company of AMEP, but I will say, they have lifted themselves off the floor, rising from $.05/6 range to $.14/.15 range, with excellent volume recently. They have done this through clear and consistent communications to the marketplace. Marketing, shareholder updates, communications, etc., whatever you want to call it.
Here is the positive out of this. They have traded around 30 million shares per day, over the last couple of days, which represents a market value of around $4+ million per day. I says this because it shows that there is strong interest in investing in this segment. Now ask yourself this, what if that $4 million dollar was invested in AMEP? If they can command such interest, what could AMEP be once the SEC review is behind them, they announce a few wells, essentially they have their coming out party for 2006/7? There is no comparison between AMEP and UPDA, even to the extent that AMEP is near profitability and positive cash-flow and UPDA barely has revenues, yet UPDA has twice the market value/cap. I hold management responsible for this. Is this temporary, considering the SEC issues, wells being stabilized, etc., or a style of the company?
Again my concern, will AMEP/CB ever market this company to effectively communicate the value that is inherent in the property/resources it owns? Will the PRs flow? Will they start to represent the oil and NG reserves that are inherent in the Barnett Shale properties? Is this going to be a techie thing, that ignores marketing and communications, or is AMEP going to be a full service enterprise that not only has superior engineering, assets and now financial resources, but a sales and marketing view that is commensurate with a company its size?
I do not want to be invested in the best story never told, so we need to change our style and approach. To those that know AMEP, can we and will we? This question has nothing to do with the company's size or resources, but rather with management's influence, control, and understanding of what has to get done, given the resources. This is to everyone's benefit, not the least which is CB, that the company's PPS reflects the brilliants that CB has created at that specific point in time.
AI
