Arete Industries (ARET)

[Kloock]

OTC company advances are more common than you might think.

From this website:
http://www.otcmarkets.com/home

There are 10,014 securities on the OTC market (pinks and higher).

There are 179 securities on the OTCQX which is the highest tier of the OTC market (as close to Nasdaq as you can get without changing to the Nasdaq, Amex, or NYSE).

It is my understanding that ARET's short term goal is to become one of the rare companies to move from PINK to OTCQX.

Over the past 25 years that I have been following and trading OTC stocks, I have seen at least 1/2 dozen companies per year make 10,000% to 100,000% plus moves.

Last year I saw four companies make such moves. One in the Spring of last year, I noted went up to a 52 week high of 139,000%.

I see another company posted today on this board that made a strong move that I was not aware of.

And I only follow maybe a hundred stocks at a time per year.

Arete is in the perfect storm position.

1st - it is very rare for a company to become fully reporting and move off the pinks. Very rare. Catching up with the SEC is very expensive and time consuming. Many PINKs give lip service to doing so. One in 5,000 actually do it.

2nd - Arete is acquiring a company (DNR with Tindal) that have real, tangible assets of significant value. From the 2009 8K audit of those assets the minimum value is $38 million with oil at $42/barrel. This is unheard of in the PINK world much less the OTC world (even the bigger exchanges).

3rd - The sector Arete is in is in the oil producer sector. This is a hot sector. Oil is in great demand and will increase not only in months but in decades until the world runs out of oil.

4th - The oil producing sector is highly competitive. I have heard it as cut throat, dog eat dog type of competitive. In that Arete has the fortune of getting into bed with DNR is a stroke of genius compounded with luck.

5th - The risk trade is on in the overall stock market. Two years ago, individuals all the way up to large funds did not want to buy stocks. They kept a significant portion of cash. That is changing in the past few months. Funds and individuals (including me) are looking for the profitable risk trade. Arete is presenting that to the investment community.

6th - Arete has stated its short term and general long term plan on its website. They have been clear about what they are doing. Their only negative is that they stumble on getting it done when they expect to get it done. However, they do get it done. The negative of taking longer than anticipated give uncertainty to the market. This is why ARET is not at 30 cents at this time. However, that they are getting it done is why ARET is up over 1,000% at this time (52 week price range).

7th - Most important to those I talk to... With acquired fundamentals (DNR and hopefully more oil companies), the stock will rise but never sink back to the depths of PINK sheet lows. Far to many stocks that rise 100,000% or more, meet the super nova fate of collapse back into that miasma black hole of the PINK sheet world. Only a fatal event would cause Arete to fall back and we just don't see that.

So with those seven points, I anticipate far higher values for ARET. Some of those values may be irrational but probable. I do look for 500% to 2,000 percent gains from today's value.