RE: RE: RE: shorts - Wiggling
All extremely good points Wiggling, perhaps I can make some response:
1) Actually drilling is likely some months away. I would think 2011 sometime. Why? Well first you need the to prep. work, not just on the ground, but also structuring the company so that all players are positioned with shares and the cash is raised and partners identified, if any.
2) Do they have the cash? Of course not, they will have to raise cash big time in advance of drilling. will it be dilutive, of course. Is the target to be drilled big enough to absorb the dilution and still leave lots of room for profit in multiples of the current shares price? I think so.
3) Will management and friend make money? Of course.
4) Will I make money? I sure hope so. But I have not yet bought a full position.
I have bought a 50,000 share starter position because I do not know the answers to all the above question, will they raise the money at the current price or a higher or lower price. I do not know, that depends of management, and how much power the brokerage firms have. But it appears that a "line in the sand" has been drawn at 20 cents and so I am speculating that cash will be raised at 20 cents or higher. Does it really matter? Not really, whatever the price is set at, I will be filling my remaining position at close to that price. It may result in averaging down or up. In any case, I will keep my current shares and hope it pays to get in early.
After the money has been raised, whatever the price, a purchaser can be fairly certain that the price is going to head up from there. Announcements of partners, new deals, drilling starting, passing through oil bearing layers, etc. are all news that could move the price up considerably and make money for investors. If they hit oil, big time money.
Am I in early, perhaps. But I think it was J.P. Morgan who once said he made all of his money buying to early and selling to early. Wise words in my view, and it has worked well for me in the past. It only costs a little time to buy early and who knows, maybe insiders who already bought shares at 30 cents do not want to issue more shares at a lower price, in which case I will be up 50% just based on the issue price of the PP shares. Time will answer all the questions and make me look like a fool or a genius. JMHO