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Re: pink floyd post# 1874

Tuesday, 01/02/2007 7:35:08 AM

Tuesday, January 02, 2007 7:35:08 AM

Post# of 51429
Pink, from my long-winded conversations with Keith, I have assessed him as being open and honest, practical and 'performance-driven'.

His desire to not elaborate on management may be one of more practicality than anything, though he will not disagree he was engaged in a prior publicly traded company that went belly up. His explanation for the reason of this coincided well with what Matt (admin) had told me about this, as Matt knew Keith back then. Matt seems like a better source of knowledge than others who only see the surface, since Matt had first hand experience with Keith back then. I closed the book on Keith's past, at that point.

However, Keith has mentioned to me he has worked as an O&G analyst on Wall St. and is 4th generation oil patch. His employees are also (near retirement age) oilpatch. Hemi itself, is a Kansas registered corporation.

These days, with SO many 'bandwagoners', I feel fortunate to find a CEO who actually talks with a twang and who's office is not in LA, NY, or Fla.

Another note partially relating to disclosure of management on the website, Keith seems to be a 'basics' man. When asked if he ever intended on moving off the pinks, his reply was simple: "it makes little sense to spend money on things that don't make money. It would cost approx. $200K to move to the OTCBB, and for that same money, I can acquire leases that can make Hemi Energy many times that."

Given that Keith's ulterior motive here is to build an asset rich company suitable for takeover by a big board company, this makes sense, and Keith's growing insider position in the company (11M shares at present) confirms this.

Though Keith has not stated to me what his target price for takeover is, my gut tells me he won't be seriously entertaining offers under $3, though that still probably wouldn't be for a couple years.

He has stated he and his (aging) partners have earmarked 2010 to sell the company.

For this reason, I suggest to present investors to load up now, find a reasonable point to recover initial seed money, ride the freebies, and take the flat rate 15% capital gains tax, when the time comes in a couple years. By then, Hemi should have acquired a VERY impressive portfolio, and if oil continues to rise in price, so will Hemi's assets, possibly commanding $5-$10 pps in a takeover.

Keith is very frugile with the issuance of new shares, so at present, I see this potential as quite possible/viable.


GLTY and all.





L~



"took me 3 long years to make a million bucks over night"

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