In my opinion...(and I'm pretty heated right now after reading last night's posts)...
In 2005 they claimed to have $88M in assets. In 2006, they claim to have $125M and remember an attorney (who shareholders have met with and know lives and breaths) signed off on that. That's a growth of $37M or 42%.
In 2005 they claimed to have $7M in pre-tax N.I. In 2006 they claimed to have $8.6M in pre-tax N.I. Again, the attorney signed off on it. That's a growth of $1.6M or 23%.
Now assuming the Preferred 3's were the so called "poison pill" and that insiders simply hold them to protect their hold on the company. That leaves approx. $10M in outstanding Preferred's based on June 15th filings. Best we can tell is that they had approx. 400M in the O/S pre-Katrina. And now, let's say that they sold 1.35B shares into the market. Keep in mind that this doesn't even account for the Preferred 3 convertibility or any of the restricted shares they used for acquisitions. With that said, those 1.35B shares at say, average price of .02 would be worth $27M. But if you back out say half of that 1.35B for preferred convertibles and restricted commons, you would have 675M shares sold into the market. 675M times .02 nets you $13.5M.
So worst case, they sold $37M worth of equities to acquire $37M in assets. Logic says that the number is probably closer to $25M worth of equities to acquire $37M in assets. Still no evidence of long term debt besides the Preferred dividends (which are really an equity/debt combo).
Any growth company does this, whether on the AMEX or pinks.
Any growth company sees a lag in profits, as assets typically come first. MOST growth companies trade at a multiple (RLTR, SPZI etc etc), but not PBLS. The problem is that everyone (including you and I) want to treat PBLS like an AMEX stock when it's not. After all, we're about the only Pinks that actually OWNS something instead of JUST OWNING A DREAM.
Yes, the Bayou Boys definitely have an "over promising in their pr's problem" but WHAT WE'RE ALL TICKED ABOUT IS THE PPS...BOTTOM LINE. You can tell me sob stories about how they promised financials and how they promised to uplist and about how they were going to be the next Exxon with their O&G...blah, blah and I find myself getting ticked about it too because THEY'RE NOT MAKING ME RICH FAST ENOUGH.
THE TRUTH IS...IF THE O/S WAS 100B RIGHT NOW BUT WE WERE TRADING AT $1, NO ONE HERE WOULD BE COMPLAINING.
Everyone take a deep breath and say "goosfraba." Remember something...YOU BOUGHT A PINK SHEET STOCK! You're not married to a debutant. She's not an honor student. She didn't go to Harvard. You're married to a trailer park hooker. She's dirty and promiscuous and shady. She'll give you the run around. She'll cheat on you. She'll lie to your face. So what did you expect when you paid for her? (Ladies reading this please forgive if this insults...not my intention).
File a lawsuit. Sell your shares. Write your letters to the SEC. Their response: WHAT DID YOU EXPECT when you bought a non-reporting pink? SLJB got investigated because it's in Canada. The SEC went after CKYS because they claimed to have contracts with the Dept. of Homeland Security...majorly stupid. I bought them both, one as a scam and one as something that appeared to be true. PBLS said the O/S would be 815M in a forward looking statement. PBLS said that Pro-gas revenues could be $1B a year by 2007 in a forward looking statement. PBLS claimed that they would be fully reporting "soon" in a forward looking statement. Get the picture. What case do you have? What are you going to accomplish with the lawsuit?
Anyway, this is a harsh post and I'm not a harsh guy. Just cranky over a couple of posts from last night that I read this morning. I'm just trying to get some longs to clear their head and say "goosfraba" with me. Sorry, but there is SIMPLY NOTHING WE CAN DO ABOUT THE PAST NOW. Sorry, but WE'RE TRADING AT $.012. Sorry, but you're going to have to keep your day job for a little while longer.
But it's only been 22 months since Katrina and probably 18 months since they got back up and operational. Before Katrina they were a struggling defunct holding company that had rusty mining equipment and very little cash in the bank trading SUB-PENNY!!!. 18 MONTHS AGO! Now, we've seen the share price go up 300% in 2 years. Not bad if you bought 2 years ago, but most of us, INCLUDING ME, BOUGHT WRONG. We bought at the top and have been bag holding as these bumpkins try to shape up this defunct company using an infusion of cash from equities. Now, they are putting 100M in Preferred 3's in place to seemingly protect themselves from SOMEONE BIGGER. That's great news IMO.
I'm calmer on PBLS now than I was on June 15th. Let them increase the A/S. Let them sell a billion shares. Let them do what they think is best. After all, when I bought this hooker, I wasn't buying Murphy as much as the men running Murphy. They play dirty, but seem to be growing the company in such a way to move us towards the pay day that we all care most about. And now, it appears some folks even more confident than the Murphy boys are having a say and THEY OWN COMMON SHARES. Wait, a minute, I own common shares too. Could they in fact have my best interest in mind for a change? We'll just have to wait and see...
From One Bag-holder to Another,
Ren
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
www.younglife.org
