Replies to post #1420 on Superior Oil &Gas Company (fka SIOR)

[trinityd]

I have follow this company many years ago but didn't own them at that time. I was just getting ready to buy shares of them at the low cents and boom, they shot to the high 20s and didn't buy. They had some legal issues which are as far as I know now settled. Some wells didn't produce as expected but belive they have been reworked(??) and are now back on line and we haven't heard yet what they are producing but we should know very soon. They were suppose to start drilling in late July early August but for reasons we don't know, was put off till the later part of October or could be sooner. Like to mention when I was getting ready to buy them many years ago, they didn't have a whole lot of information on them and they shot up in price for no reason with no news and had a very small float like they do now. Things are different now and alot better for them with horizonal drilling in the works and with the price of their land holdings worth a whole lot more then it was in the past. Also they should be able to pump out much more oil and natural gas with these new wells to comes on line after drilling them(thats if they hit good pockets. SIOR is the best value out there as the company have been asleep you might say and the price just fell to the bottom. SIOR is now coming to life with a great future and those of us who bought SIOR at these low prices will be rewarded greatly down the road when revenues pour in. I'm looking at over .60 or higher in six months.

[geopressure]

Arlocali01 - Stocks like this are HIGHLY Volatile. This stock can easily go up 300% next week and just as easily go down 300% next week. I value this company's leases that are held-by-production to be worth over $10 million, but the current market-cap is only $1.24 million. That tells me that either my valuation is wrong, or the millions of investors making up the market are wrong. In this case I do believe that the stock is undervalued & I see a chance for the stock to see an increase in share price or 200% to 500%. The market has overlooked this stock so to speak, not realizing its true value due to a recent bankruptcy.

One thing to remember when trading OTC stocks is that 90% of them are scams to some extent. Sometimes you can buy a scam before they start paid promotions & make money. If you plan to hold a stock for the longterm, you should do your homework, find out where their wells are and look the GPS coordinates up to see if there are really wells there, follow production & drilling updates via State Agency Websites, and always ask yourself; do these guys have enough cash coming in to operate or are they diluting the stock to pay their salaries. I have found that the more PR a company releases, and the longer those PR are, the higher the chances of the company being some sort of scam. You will notice that this company puts out only minimal PR's & no other communication - this is because they are busy trying to get oil out of the ground & don't have time for such B.S.

Because of this company's past financial problems, the vast majority of traders immediately moved on to the next stock as soon as the red flag of bankruptcy was seen. This has left us with an opportunity to enter a position here while it is undervalued. Drilling/Completions/Production of new the new well are events that will draw a lot of attention back to this stock over the next month or two. All of our recent gains might stay, or they might go... but at the end of 3-4 months I'm thinking 200-500% up, and this assumes that oil reverts back to $85+/bbl & that the market as a whole doesn't crash.

Despite my optimistic outlook, I would suggest a small position that you can afford to loose 100% of. It would also be wise to have a large cash position because Greece might default any day now...

Other Petroleum companies that you might find interesting:
-DUNR, less risky, 88% undervalued according to analysts, Tuscaloosa Marine Shale Upside (the own 15% working rights to all of Encana's TMS leases)
-QRE, Huge dividends
-REPYY, large south american shale acreage, best seismic processing there is - helps REP identify the best places to invest their capital, they are the only company that can accurately interpret seismic below salt structures or salt welds.
-TECO, This is an example of an overall bad stock. I do not trust their management, but if their delayed drilling in Belize can produce a discovery, or if TECO claims that it found oil (whether it does or not) it just might be time to buy a few shares... I believe that we will see a PR that suggest they made a discovery, whether they find oil/gas or not.

Good Luck out there...