Owen said that the attorney applied for a new trading symbol for Petro on last week's call (confidence rating 15%). Since we've been hearing the same song about trading by month end since last November, and have seen virtually no positive momentum, I made some efforts to verify that claim.
Yesterday I was informed that a shareholder is generously bank rolling the launch to pink sheets. (confidence rating 100%) On behalf of us all, THANK YOU! Having someone come out of their own pocket for what I estimate at $500k should also boost our confidence in Petro. They would not be doing this if they didn't believe it was a good investment.
So what does that mean to us? Well, assuming this information is correct, then we will see a new trading symbol for Petro and it will be trading on the pinks shortly. I know, I know...Pryme says they can't because they already merged with ptrz... well the securities attny says they can. Securities attny trumps accountant on this issue. If there's an issue with the MO or KS consent orders, then their counsel should have dealt with it.
Assuming the above info is real---
The good news is that we'll be able to sell shares to raise capital and so will the mine owners which means they can begin production efforts. Once they are selling the yellow stuff, granite and other minerals, then they have cashflow and therefore Petro has more cashflow.
If the only reason we're doing pinks instead of nasdaq is cashflow and reserves, then we shareholders can band together and get that done. I've spoken to 20 that have pledged to pitch in if necessary. It's in our best interest to do so, now we just need to find out if it's legal to do that and set up the structure to make it so.
The bad news is that stock loans for pink sheet stocks will take significantly longer, probalby greater than 90 days, the Loan To Value (LTV) will be lower (hopefully at least 50 to 70%) and the interest rates could be higher (8% or more?). I understand that Larry is reaching out to the lenders to get more specific info and I'll share it here once he gets back to me. (I suggest that folks not email or call him, he is busy trying to get stuff done and won't have time to respond directly) The 30 day estimate was for a Premium stock after IPO...not a pink sheet stock.
The other bad news, lower open values. I've heard everything from $1 to $7 for pinks, whereas the estimates were in the $10 to $18 range for nasdaq open. Johnny said as high as $24 just last week, but I don't think his optimism is realistic. I'd love to be wrong and owe him an apology and a milkshake. Currently it is speculated that the par value is about $30. I've seen no hard numbers on it (confidence rating 70%), but sounds about right.
More bad news, I've been told pink sheets stocks aren't eligible for strip and coupon trading. The stock needs to be on an exchange and have a strip or coupon attached for that opportunity. We'll have to get to nasdaq and then be on for 6 months. Again, love to be wrong and owe Johnny an apology and a green chili cheeseburger. Hopefully he'll address this tonight.
The final bad news, the only avenue to fast cash is to sell, which will affect share prices as people liquidate some or all of their shares.
If you do plan to sell, keep in mind that short term cap gains are 30% and long term (held a year or more) are based on your ordinary income tax rate, at least til the end of the year. After that the Bush tax cuts expire unless extended. Since this administration and congress is all about tax and spend, don't hold your breath.
Contact your accountant to educate yourself so you can make the best decision on if and when to sell. Don't get caught with your pants down April 15th.
btw- I don't give a flying flip if anyone believes any of this... I share it only to contribute in a positive way on this board. I have blocked all the people who do nothing but bash and add nothing of value to this forum...so have a ball but expect no response...I won't be reading it.
AI
