Southern Pacific Resource Corp STPJF

RE:RE:RE:RE:RE:RE:Where are the lawyers

[nikehercules]

Wittman is correct.

STP has flip flopped on important items, but they have always disclosed those changes. As for production information, that data is publically available through the AER and other 3rd party vendors at a cost.

Changing strategy  is not something a shareholder can sue management over. You have every right to sell your shares if you disagree with their strategy, but holding management and the board liable for the failure at McKay is not going to happen. These guys tried everything, ICD's, perforations, high pressure steam stimulation, steam splitters etc. etc. basically everything a reasonable management and engineering team would try and they still failed. It's just a bad reservoir for current SAGD technology.

However, the March 17th release could be construed as misleading. In it they mentioned 2P1 was testing between 700 and 900 bbls/day. At or very near the time of that release STP had to throttle back 2P1 because of hot spots. I'd say this was done more out of enthusiasm rather than fraud. Management also didn't buy/sell any shares during this time so nobody is going to waste their time in court.

We should cut Farmerman some slack. From earlier posts he mentioned having 800,000 shares purchased at much higher levels. He's lost a couple lamborgini's and lashing out at management on a bullboard is all he can really do. All I can say is for next time - diversify, use a stop loss, and avoid "sunk cost bias" thinking. Cut the losers fast

Wittman is also correct in the market has risks, but I think we'll all agree there's a world of difference between holding STP and SPY. Farmerman went into an exceptionally dangerous stock (suitable only for seasoned traders or those who really know this business) without a solid risk management plan and got crucified. He did not sell, he did not diversify. Instead, he watched a sizable portion of his net work melt over the last months and did nothing.

I know I'm picking on you Farmerman, but if there's anything positive to dredge out of this mess, it's those absolutely critical rules for investing/trading we continually ignore at our peril. Don't let this happen again.

Disclosure - I sold everything long ago.