Replies to post #37979 on Hemi Energy Group Inc. (fka HMGP)

[Big Mur]

When you have vendors, and/or landowners or others who during the course of the business transaction are asking for shares in lieu of cash, what are you supposed to do?

When you work in an environment where the best way to obtain the services and equipment you need is to nuture the best of working relationships with vendors you can trust, and vice versa, and those vendors know all about your company from first hand knowledge... and you're in a position to need to curry favor with them.... when they ask for shares instead of cash, what are you supposed to do?

I believe it is a mistake for someone to make any assumption that shares are being used to pay for services because they HAVE to be. That's as naive as the suggestion that every time shares are used, it's a bad thing regardless.

When the SP is this low, is it the best bang for the buck? Probably not. Does it appear to make for a pretty good deal for the vendors? In general? BIG maybe. Risky.
With Hemi in particular? Well, who better to know about Hemi than the very vendors who are performing the services and have the most intimate, first-hand look at the fundamentals and activities of the company... great deal for the vendors.

Someone made the suggestion that Keith probably isn't issuing shares in a straight cash-value basis... sure seems practical from Hemi's side.... and Keith is shrewd like that. But there is also a value in treating vendors and landowners the way they request to be treated, so straight value might still have a good return.
Where landowners are concerned, Hemi's history of working with them in this way has allowed Hemi to get into leases that even the big boys can't get into (often the case in Tarrant county).
As far as vendors, where Hemi has to compete for resources against much wealthier and larger companies, treating vendors the way they request to be treated often gives Hemi priority over all except the biggest of the competition.

None of this seems criminal to me.

I'm not saying you're wrong PE, in general. But when all factors are taken into account, it makes a world of difference, IMO.


DON'T BLINK!!!!