Rough times in all markets, starboy. And there is no doubt that accumulation has fallen off but I think it more due to people's uncertainly about their own future financial situation than anything.
You mention production numbers and financials not available. That's a point and not sure how often you read here but IMO and in this market the items Hemi has stated are much more important than a pinkie reporting financials on pinksheets.com or production numbers. I'll give you a reason too... financials put out on pinksheets.com don't even have to include everything (i.e., tell the whole story). They can be "interpreted" similar to statistics in this market. Not talking full blown financials like on a big board stock but what most seem to think are the be all and end all and that's pinksheets.com financials. Some companies may do them "good" but they definitely don't have to be and some companies do take advantage of that. Also, productions numbers put out by a company without knowing who gets what money are also not very valuable information in helping to determine how the actual company is doing. Point being, a monthly production report of 5,000 bopm might sound great to most people but is it all that great if what they didn't tell you is that they are hugely in debt, it takes over 1,000 bopm just to pay the interest, and of the 5,000 bopm much of it goes to 2nd and 3rd parties due to poor financial deals? Not so great now, is it?
What Hemi has told IMO trumps what you are asking because it simply and point blank tells ya the "what's up" so to speak. Yeah, it's not a full blown financial but the few sentences Hemi has stated about their financial situation tells us much and doesn't require interpreting a less than full blown financial statement or wondering who gets what money out of each barrel of oil sold.
Here is some of what Hemi has said that I think is important...
Oct 15th - "Net proceeds to Hemi, after expenses and other customary adjustments, were $475,000. Net proceeds will be used to continue developmental drilling programs in Woodson County, Kansas." (money not going to buy fancy cars and fur coats for the women but being put back into the company. Plus, it's a large sum of money considering what the current market cap is.)
Aug 22nd - "Hemi has a 100% working interest and an 80% net revenue interest in the Collins lease as we also have more than 10,000 additional leased acres in Kansas." Hemi stated a couple years ago they will not participate in any death spiral type financing. Here they state their working interest and royalty % so we know how much of the money THEY are getting... all of it except what goes to the land owner. That is exceptionally good for a small oil company because with a number of them their working interest can be far south of 50%.
Aug 22nd - "Hemi's very artificially low market cap is substantially below book value and below tangible asset values based on conservative oil and gas industry standards" This is a statement of fact and not their opinion. Share price on Aug 22nd was 0.045. You can do the math. The word "substantially" has room for interpretation but the point was made. Back on 6/12/07 they used wording of "management still strongly believes the market price does not begin to reflect fundamental asset values." That was stated more as an opinion when the share price was .26. However, on Sep 27th, 2007 the "believes" part was dropped and replaced by a non opinion type statement... "Our Market cap is substantially undervalued, an artificially low market cap based on what the Oil and Gas Industry book value would value Hemi Assets" This was IMO due to the drop in price from .26 to the Sep 27th price of .13. At .13 the books clearly showed this as the case. This is important to me because in order to make a statement like that in a press release, they must have documentation and books to be able to prove it. When a company makes a statement of "Our market cap IS substantially undervalued" that is not a forward looking or opinion based statement. This was again reinforced in the Aug 22nd PR like I mentioned above.
July 31st - "Hemi has been cash flow positive for all of 2008 and continues to be cash flow positive and meeting all normal operating expenses from oil production. In addition to its budgeted funds, Hemi is also tanking extra oil for several months more than is necessary for normal operations." That is a HUGE statement and can replace pages and pages of financial statement jargon BS. That tells you flat out and simply the way it is. I'd think a statement like that would mean mountains to those who think there is always something "hiding" behind the corner because there is no wiggle room in that statement like there is in a statement about oil production when it is so often NOT clearly stated who is getting what and how much the company is actually getting. That statement was big and it is disappointing that many don't appear to get how big of statement it actually is.
April 17th - "Hemi has never issued convertible debentures, preferred shares or any other forms of toxic financing and Hemi also remains debt free. Neither Hemi nor Hemi's management have sold shares in 2008." Another huge statement that can't be made by very many other pink sheet companies based on what I've seen. Keith has always IMO tried to look down the road and protect his company and the shareholder interests. Not only have they never done toxic financing but they are also debt free. Management also believes in what they are doing because members of management have not sold shares. People like to throw the "scam" word around but does a CEO who is the largest share holder and is looking to scam have his share price go from .019 to trading over .70 and DOESN'T SELL ANY SHARES??? LOL! No! He is building his company and believes in his company. Oh, and before somebody screams that "The o/s went up and they said they didn't sell any shares! LIARS!" That's not what that means. Pinksheet companies can sell shares directly to MMs and do this normally at a discounted price. Hemi hasn't done this and instead the o/s has raised due to the issuances of shares for assets and services. That's a BIG difference as compared to just dumping shares into the market for money... because you never know what the money is used for. When shares are issued for assets and services at least you know the money went directly into growing the company.
Anyway, this is getting a little long so I'll stop here (there is more but don't want to totally lose your interest. LOL) but I think it is important to point out the items I did above because I see statements made in legal press releases like Hemi has above as being very important and in many cases even more important than a "generic" barrel count or a pinksheets.com financial statement.
AI
