MWM - I very seldom post publicly anymore but you and EdF have managed to draw me out of my cave.
First let me disclose that I am an SIOR long with a small position compared to some. Secondly, let me say that I don’t know who was selling 2mil shares through CSTI a while back and I don’t know who is on the Ask through ETMM today. You say the company or an insider (who knows something bad is about to happen?) and geo says shorters trying to drive down the price so that they can cover at a profit. I’m not here to debate that.
But scam???? Give me a break!!! If Dan Lloyd is running a dilution scam here, he’s doing a lousy job of it. Whether to sell hundreds of millions of these $.02 shares to “clean-up and leave town” or simply to sell a couple of mil to pay the light bill, wouldn’t you think he’d at least be somewhat interested in running an aggressive awareness/promotion campaign bragging about new oil leases, planned drilling, etc., instead of being so deathly silent that he’s succeeded in aggravating traders such as yourselves? If this is a share-selling, money grabbing penny scam, don’t you think that DL would be pandering to traders/investors rather than irritating them.
Actually, what does make sense is that we shareholders/Ihubber’s are along for what I believe will be a great ride, even though right now, we are not a material part of the business plan.
I suggest, if you haven’t, that you read geo’s sticky, which is full of what I believe are rational, common sense rich assumptions - that make a lot of sense to me. Now, if you choose not to believe that Dan Lloyd is as portrayed…if you choose not to believe that he is the primary principal of the largest private drilling company in the country…if you choose not to believe that he is a wealthy man, then, you should run away from this and not look back.
If you choose to accept the assumptions that geo offers, some of which have also been present in the posts on this board of other oil business professionals, then what is going on now does make perfect sense.
IMO, what has thrown many off, including myself until I figured it out, is that last fall, the company was more communicative and seemed to be ready to begin drilling immediately on what was already owned and optioned. Then something changed dramatically and the cloak of silence descended. Here’s what I think happened. DL decided, for whatever reason, to think much bigger and to put operations plans on hold to enter into a “full steam ahead” acquisition mode, which would require very tight information security – hence the silence. DL is walking a bit of a tightrope – his drilling company is doing contract work for companies that are competing for land positions in this play…… My guess is that he’s playing this very smart on the operations side and we will know in time whether this assessment is correct.
In the meantime, will cheap stock be dumped into the market for lunch money? I don’t believe so. While stock or warrants may be part of a deal with a JV partner/driller (DL’s own Cactus Drilling or someone else), I’m guessing that said stock will be heavily restricted and that any warrants will have a conversion price much higher than $.02.
I think these shares at this price are gift, but then that’s just my opinion.
