Replies to post #24836 on Hemi Energy Group Inc. (fka HMGP)

[lazyeye]

An $8-10 million market cap is pretty generous for a company with about $120,000 in revenue and plenty of expenses over and above that figure. The PR's this year could have been consolidated into 3 or 4 imo. Mostly sizzle and very little steak. Not going back to .70 any time soon, that's for sure. That glory run is over, but a double here is not out of the question with the right news.

I hope they do well, and I hope the numbers are good.

[kelseyf]

Lazyeye, you bring up the two critical sides of the investor fence regarding HMGP and the current PPS situation.

One side of the fence is that HMGP is keeping quite about production/results and a gagged TA is to protect it's current business strategy (i.e. new lease development) as well to the need to complete the required re-working on the wells damaged by the recent flooding.

The other side of fence is why does HMGP keep throwing out these PR's that continue to elude to the "upcoming indication" or "forwarded statements" which IMO is creating a high level of doubt or for a better word speculation in the current activity of HMGP ant the PPS.

If the reason for the "quite period on production/results and a gagged TA" is clearly to protect HMGP going forward business strategy and time to repair, then so be it; I can live with that reason and I suspect many other longs can too.

However as time moves forward the number of "Newbie" interest has increased and I suppose based on this increased interest a wide range of unpredictable trading strategies are now being considered and or currently being used day to day trading HMGP. This is very evident by the number of new posters on this board as well as the increase in OT type of discussion that has recently developed.

Clearly opposing forces are at work.

So how does all this play out?

IMO HMGP has again set itself up by indicating in the last PR indicating it will release with one to two weeks results of this re-working of wells.

What does this mean??

Expectations by many to see what is released by HMGP as it relates to this statement and it needs to provide the long needed substance that many investors expect.

In simple terms many nvestors will only allow so much time when this type of communication pattern starts to develop from any company.

Yes HMGP took a huge hit caused by the floods;
Yes HMGP has a business model that is strong and backed up by proven reserves;
Yes HMGP has strong business relationships within the O&G industry;
Yes HMGP takes care of its own and the landowners of these leases;
Yes oil is today >$95 and allows HMGP to bring oil to the market place at a premium >$20 a barrel more than what oil was 6 months;
And yes this all is good for HMGP in the long term

BUT there is now a need for the current

Yes HMGP has again set itself up for an expected update again eluding to production from the reworked wells within a 2 week timetable;

AND

Yes HMGP, IMO it is time to share this news within the time frame indicated based on the specifics released in the 11/01/07 PR.

Otherwise IMO the doubt and speculation involving HMGP, it's current trading pattern, and conviction as a sound longer term investment only gets more difficult.

And thus the unpredictable pattern will most likely remain over the short term

Kels

[Big Mur]

The one consistant flaw I see in that whole argument, is that you make it all shareholder-centric.
What makes you think that that Keith makes all his decisions starting from the shareholder viewpoint and then going on from there?

Business first... the stock will take care of itself for the most part. I am not suggesting nor advocating that shareholders are or should be ignored. But in nearly any business, there won't be any benefit for shareholders if the business itself isn't taken care of first and foremost.

While I am quite certain that Keith and company do bear in mind the welfare of all shareholders in their decision-making, I do not believe for one instant that he makes business decisions based on how much shareholders are going to pelt him with nasty emails or how much they're going to whine.

Maybe you'd run a business that way, but if I found Keith were making that a priority in running Hemi, rather than focusing first and foremost on the business itself (independent of the stock), I'd sell it all today.

[Waverider110]

lazyeye-the oil patch is like that

and you probably know why. Grabbersnachers!

[opportunistically]

Nice post lazyeye, thanks. It answers a lot of my questions already ...

What's with this paranoid CEO? Too bad. I wonder if he also holds back on what he knows about his subsurface acreage? At least that I can check that out and comment on it. But if he's playing games with PPs and dilution, well, the share price will show it of course, and he'll certainly scare me away ...

Opp

[lowman]

lazyeye, I like your summation of Hemi's present situation. The only thing I might add is that even with an ugagged TA, full disclosure of ALL newly issued shares will still leave some, asking questions.

Keith can't win, no matter how ya slice the cake, and unless he gives full disclosure, which he can't for business purposes, much, if not all, is lost on the attempt.

Keith has said enumerous times, that shareholders are 'shooting themselves in the foot', which I tend to agree on, but only in part.

Since this is a pinksheet stock, and SO, SO many pinkies are abused by rampant diluting CEOs, Keith simply needs to understand that we need to feel we are getting our money's worth, and not 'being made fools', like so many other CEOs are quick to do.

I am fortunate in that Keith has a near always open door of communication with me, and with that, uno numero job one is getting the TA ungagged. Concessions must be made, from time to time. However, if an ungagged TA means a pain like that of unanasthized pulling of teeth, I'd rather he just keep the nitrous on, because in some (rare) cases, what I don't know, won't hurt me. LOL