I don't really try to call bottoms, especially when they're trading this close to zero. I think the current price is a good buy. As someone else pointed out, this is a sub penny oil stock. All they have to do is start producing oil (or just sign that Bakken deal) and the revenues that come from that will dwarf all of this other BS (dilution, toxic financing, etc.) It's not if, it's when. With the new finance deal, they've got enough money to last until it happens, and when it happens, they'll be able to turn a profit fairly quickly. Everyone who keeps making the bear case for this stock keeps pointing out all of the negative parts of their balance sheet, and apparently assuming that the company isn't going to eventually start producing massive (relative to their expenditures) revenues. That's fine, but if you want to argue against a stock's potential success, that argument pretty much precludes you buying stock in ANY company. If that's the only thing they've got, it's pretty weak, and if it's true, then, yeah, I agree with them: If this company doesn't start producing oil and nat gas, then IT WILL go BK. But that's kind of a no-brainer, isn't it? The truth is that the only reason this stock is this cheap is they're surviving on dilution until revenues come in. They either come in or they don't. If they do, anyone who buys now is going to make ridiculously high percentage gains. If they don't, you're going to lose your entire investment. Simple Vegas play, as I've been saying from the start. The odds just look A LOT better now, with the new finance deal.
AI
