Still doing Due Diligence on this company before I consider opening a position. Based on others DD, it appears that SIOR has some leases in OK in the MISS play. Based on strict asset valuation, this company APPEARS undervalued. These leases can bring anywhere from $500-$2000/ acre depending on multiple factors.
However, there is much more to a company besides assets. What are there liabilities? What is there cash flow? Are they operating in the red? Is debt suffocating them and the reason they can't and won't report?
Valuation of a company does not consist of just assets, otherwise every company would appear undervalued. The cash flow and liabilities are hard to determine since this company is non-reporting. After reviewing past posts, it appears they have claimed no money to report? Furthermore, they claimed they will report but 9 months later, nothing?
Their lack of PR's is double sided. It's good in the sense they are not the traditional pump and dump fraudsters. However, it's not good in the sense that they are a bit extreme and do nothing to promote the stock/company (JV's, drilling, acquiring, etc).
What it boils down to is what are there liabilities and what is there cash flow? ie: what is the risk of them filing bankruptcy?
Please note, I'm not trying to bash nor promote the company, just performing DD before I skip to another company or invest x dollars in this one.
All comments, both anti/pro SIOR are welcome.
