RE: Just over two weeks until we start drilling agMassEntropy. I agree, the first flurry and financing was just the primer for this stock given the drilling success they have had. In my opinion, this can only get bigger as they test new targets and find new developments, as well as bring the first 3 developments to market which will dramatically increase cash flow. The natural gas business is all about building assets and then being bought by a major. The reality is that they are in an area where everyone else thought it was dry because everyone drilled off target. It is only with new enhanced detection technologies that these finds were possible. The really good part is that Paramax has bought and continues to buy all the land, this can only get better for certain. I suspect action soon, drilling permits, new drilling, and drilling production wells. You know what they say, buy when its quiet, I suspect this will pop over
.50 in the snap of a finger when things start up again. Remember, the last financing was at
.50, so there is a lot of incentive to make this work.
Also, the ratio of paper exiting the play to shares outstand before the
.50 financing for PXM was very low, i.e. not a lot of paper came out, they finananced at
.50 and not
.30, thus all this is saying that a lot of paper is holding given the huge upside potential. This in contrast to SFF which had an extremely high ratio of paper sold to stock outstanding, thus meaning the risk has been removed for the paper holders and straddled on to investors who bought it, thus meaning SFF is a drilling play with many more cycles to go, whereas PXM is a production play with perhaps one or two more cycles before getting acquired by a major. Both are a buy, but for different reasons and certainly different exit target prices.