Replies to post #23996 on Hemi Energy Group Inc. (fka HMGP)

[duelittle2]

Very good point ..imo...look @ mobl...Jay shopped too much, expanded too fast, did not "work with" what he had to get a revenue machine going...This may be Apples to Oranges for some bc Jay bought too much "overhead" while hemi's overhead per purchase is Much less!

Some say Hemi has enough on their present leases to give them enough work for Years!!....so based on that..I would prefer to see every $ spent going into production and development for more production and work Mostly on the revenue stream!...If any lease purchasing takes place...I hope they are real "Prime" acquisitions!!

The street does not seem to be putting too much weight on the proven and potential reserves...which may really be only bc HMGP is not that well known yet!!..But High production and Cash in the Bank never looks Bad!!

fwiw

[lowman]

Actually, what I referred to was related to Sabine Royalty Trust and the benefits of havine such a Trust.

Keith referred to Sabine as 'the top of the food chain' in the O&G industry.

It is simply owning the royalty rights to leases with producing wells on them.

I guess it's kinda like JG Wentworth, who buys people's annuities and whatnot, usually at a considerable discount and due to impatience or a desire/need for quick cash. It can be considered somewhat predatorial, but that's how money is often made.