American Energy Production Inc(fka AENP)

[Jagman]

Best AMEP RB post of the year for all of 2004!!!!

By: r_rivers00
31 Dec 2005, 04:54 PM EST
Msg. 57187 of 57189
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Let's set a few things straight...

1) This is not an "investment"; it's a high-risk, high-stake trade. That's why it trades over the counter. You're likely to lose your shirt if you fall in love with your investments, and that is particularly true with penny stocks. That is also why Greeneyed's post about 300 percent increase over the year is meaningless. I certainly wouldn't put my money on AMEP as a year-long investment. I bought at .027 and sold at .07. Unlike Greeneyed, I didn't have to wait a year to get my 300 percent increase. I suspect that many are here because they bought in the 6, 7, 8 penny range and can't afford to think about bailing now.

2) Beware when companies obfuscate the obviously simple facts. For example, what percent of AMEP's revenues will go toward the BDC investors and what percent will go toward the parent company? I challenge anyone to give me a straight answer to this question; I certainly can't find it anywhere. That's because the financial arrangements are not there in plain view. They bought a rig. But we don't know how much they paid, who paid for it, under what terms of the deal, etc. Why, you have to ask yourself, is this such classified information? One answer I've heard here is that, in case CB decides to sell, he can get a good price. Two things about that: First, why would secrecy fetch him a higher price? Second, if he bought the rig with the safety net of being able to sell it in the future, doesn't that tell you something about how much confidence he has in finding oil?

3) After telling shareholders that the company was about to drill in the next few weeks, a good, honest CEO would also tell his shareholders why he wasn't able to meet the deadline. That is called openness. That is called honesty. And my experience has always been that, when the company is honest, the market rewards it -- even when the news isn't as good as expected. I learned this the hard way -- by buying PRVH (another sleazy CEO, in my opinion) and by not buying ALMI when it was a dime (it's now 90 cents). My experience tells me that the best predictor of an OTC stock price is not, as many of you think, its potential (because that is ALWAYS hyped) but the integrity of the CEO. Ask yourself: What is the integrity of CB like?

4) So what's in the future? I, for one, don't know. I only know that this company does not come clean with its shareholders when things don't go as planned -- even when the plan has been publicly announced. This, to me, is unacceptable. We know there is rig out there, but we don't know what percent of it has already been farmed out to investors and what percent of its income will eventually find its way to shareholders. That makes me nervous. I'm waiting in the sidelines. If it drops to below 3 cents, I will buy again.

All this is, of course, just my opinion and anyone who makes investment decisions based on what they read on the RB chat board is stupid. But good luck to you all. If you get CB's ear, just ask him to do one thing: come clean.