Post by
Bertie20 on Jul 07, 2023 10:09am
DME Reflections
I've held this stock for well before even Rohlfing was on the scene (although I did briefly sell out, when I needed to raise capital, a few years back). There's some interesting discussions on this and other boards about what they would do if they were in DME management's shoes, and potential alternate strategies etc.. For me, thinking like that is entirely pointless, and besides the point. In reality--with this and all stocks--there is only one question: is it a good investment?
Currently, the company has eight wells in the Holbrook basin, which is known by some as the saudi arabia of helium. Holbrook's helium potential is the reason the company was founded, and the reason that Rohlfing is its CEO. Currently, however, DME has ceased all operations in the area, with no timeframe for when it will return, and, somewhat disgracefully, no clear explanation for why they are pulling out (why precisely do they need an enhanced recovery permit?). Given the need for new regulations (which is out of their hands), and a lack of guidance around timings and the specifics of this issue, I'd say there is around a 50:50 chance this company will never commerically produce helium from Holbook.
At the same time, it is painfully obvious to me that the top management absolutely must go. In terms of execution and communication, Robert Rohling has shown himself to be unsuited for the position. He is what he always was: an exceptional and passionate explorer, with a fantastic record of discoveries. But that does not a CEO make, and he has to own this debacle. Meanwhile, Don Mosher--who has a checkered corporate past in any case--will be required to go, whatever anyone thinks. In the space of just a little over three months, he has lost the company's insitutional investors over 75% of their money. That can happen with explorers, but it should never happen to a company that had already commissioned its first plant. He's, essentially, an untouchable at this point, in the worst sense.
It will thus come as little surprise that I sold out this morning. I will keep half an eye on this company, and, if new blood is brought in and I see progress in both NM and Arizona, I may be tempted to dip back in. But for now, so long and best wishes to all.
Comment by
fredo1 on Jul 07, 2023 11:20am
Very cogent post. It's clear to me that the Holbrook wells cannot be economically produced naturally. Thus, I believe the odds of the MaCauley field being produced are very low. I reserve judgement on the Rolfling field. Just my opinion.
Comment by
niggle on Jul 07, 2023 12:08pm
Very sensible and well reasoned post
Comment by
Buyhigheatchips on Jul 10, 2023 11:49am
Sorry to see you go Bertie. You were one of my trusted voices on here. I debated selling but so much damage has been done that even if there's a chance of NM making a profit and DME getting back to AZ in a couple years I feel like I have to take it. I have no faith in the company but just hoping their own self-interest reanimates this corpse one day.