Hey Cropduster, Merry Christmas and looking forward to this coming year with HUSA. Thanks for your views and opinions, I always enjoy reading what you have researched and your optimisms. The best is yet to come.
Sentiment: Strong Buy
Merry christmas and good luck for SEC outcome and Serrania in 2015.
Hopefully Hupecol does not delay Serrania drilling due to the high worldwide oil offer.
I still see the last point as the major risk, since HUSA can't accelerate the process.
Thanks again for your reply back it. Was about this time last year I bought HUSA maybe things will turn for the best Crop have a great Holliday
It is pretty easy to see what happened today. Someone decided during the last 15 minutes of trading today to buy in excess of 400,000 shares. Probably someone who doesn't care what such a purchase does to the share price on daily trading basis. He just wanted his 400,000 shares right now, before oil comes off its bottom.
It is obvious that the market maker was caught off guard and the big purchase simply took down all the low hanging sell orders that were in the que. The share price spiked to 22 cents for a moment until the market maker got things back under control. He made sure he got in a trade from his book at around 15 cents to bring the share price back down to earth. It will be allowed to go up later, but in an orderly fashion without any gaps, if possible. Market makers don't like gaps.
In any event, in my mind what happened today simply shows the potential for this stock if hedge funds and the market in general start buying it again. Today we saw a little bit of what HUSA has warned about before in its quarterly reports. The share price can be very volatile, both to the upside and the downside. Keep in mind that there are only 40 million shares in the float.
Maybe we can watch the SEC form 4's over the coming days to see if this purchase ended up being reportable for anyone.
This stock may get exciting again once the shareholder lawsuit and the SEC case are out of the picture. For those that don't know, this company has no debt and has both a domestic and foreign drilling program. The foreign assets are in Columbia. With oil prices having cratered, it is all about the cost of production now for most oil and gas companies and HUSA has a cost of production that is significantly less than the current price of oil, depending on how you calculate it.
Have a good weekend all,
Sentiment: Strong Buy
Thank you. NASDAQ saying .15 also. Am contemplating getting in on Monday. Need to do a bit more. Always concerned when I see 'court' or 'lawsuit', which is also why I believe the traders are playing this.
Probably traders getting in for a quick pop at around .12 and taking their money out at the 50 DMA. My question is: 'What is the closing price?' as Scottrade is posting two different prices in different screens, one being .15 and one being .19.
Hi back to you, Gene. Nice going on getting some more HUSA at $.16. I have been looking at doing the same thing myself over the last week.
Concerning your question about the SEC case, my guess would be that it will be all over by the end of January. We'll either get a summary judgement, or if not, I suppose the currently scheduled hearing could take place as planned starting on January 12th. The hearing could go as long as 3 weeks, which puts us at the end of January.
There is the possibility, of course, that HUSA could appeal the judgement in this case, which could take another year or more, depending on which route the appeal takes. HUSA has said they will do this if the case is not resolved in a way that gives HUSA the right and latitude to fully defend itself against the charges. My gut tells me we will get a settlement in the SEC case, just like we are getting a settlement in the shareholder lawsuit. An educated guess would be a $3 million fine, with Mr. Terwilliger staying on as CEO and Chairman of the Board. Total cost - $10 million. $7 million to the shareholders and $3 million to the SEC. Then it is back to business as usual.
The unfortunate part of this story, at least in my mind, is that HUSA did not do anything illegal, wrong, or improper. Like I said before, we'll see what level of common sense the judge has when he issues his findings.
Glad to hear you made some money with GDP. In fact, I took a hard look at it last week. Goodrich petroleum is based in Houston, just down the street from HUSA, so that got my attention immediately. HUSA has 6 folks total. GDP has 103. My concern about GDP is that it has $610 million in debt, but its revenue for the last 12 months was only $210 million. Debt is 3 times revenue. That is a lot of debt. Hmmm. HUSA has no debt and $372K in revenues for the last 12 months. Anyway, I have no doubt GDP is a good company and will likely make more good money for you.
Sentiment: Strong Buy
Hi Crop it's Gene again I got a little anxious bought more HUSA today day at $.16 I missed out Tuesday $ .12 was at work any way if you have time I would like to understand your last post Is it the judge might put this dispute to rest here soon if yes what is your time frame best guess I also bought some GDP I have made $$ this time 2 years ago sold bought in at $5.90 small shares 1200 .
Thank you again .
Nobody does more for their members than these guys, always searching for the perfect play at the perfect time
RSH on 10/20 closed @ 1.04, today 0.39. HUSA then were 0.23, today 0.128. WOW, you're on a hot streak. How's that retirement looking?
Sentiment: Strong Sell
Cropduster, for the most part I agree with your assessment of HUSA’s positive factors (and to be clear I was simply listing negatives, not writing off the company.) If it drops to $0.10 I, too, will probably load up at the buffet on what hopefully will not be empty calories.
I hadn’t thought of the asset-driven merger/buyout scenario though I agree HUSA would probably reject anything in the $0.50-$1 range and I certainly hope for bigger share value.
That said, due to the uncertain political situation I am probably less optimistic than you about spudding any time soon in Serrania. This isn’t necessarily a bad thing because it frees cash for more smaller domestic projects, though this would obviously delay a (possible) big pop in share price.
The next 12-18 months should prove to be exciting times after management is freed to concentrate on business. From what I have seen of Mr. Terwilliger he is a resilient risk-taker dissatisfied with anything less than major success, and will not allow HUSA to go gentle into that good night.
Execution Sir, simply execution....but since I bought more at 17 and 16 ill just wait and see.... at least this time I know what the odds actually are .. but I do believe in miracles!!!....one thing for sure--it looks very bad down here--cant get any darker --a dime? a nickel... so what ....never thought prayer was a good strategy but I guess that's all that's left at this point...im not betting on FARC...ill bet on " give us all a break".....goes to 5 bucks i'm back in the drivers seat!!
One other thing, then I'm done for the evening. It's been fun.
At this level and in the current environment in the oil and gas industry, I would say that HUSA is in buyout or merger territory.
The shareholder lawsuit and the SEC case are and have been holding us back, no doubt about it now. Once we are free of those two situations, I would not be surprised to see a buyout offer in the 50 cent to $1 range. Somehow, I doubt HUSA will take it, but you never know. Keep in mind that the company is debt free and holds assets to are likely valued in the $50 to $100 million range. Knowing that oil and gas assets are going to be on sale for awhile as high debt companies deleverage, how much would you pay for HUSA?
This is one of the positives for HUSA in the current oil price crisis.
Just a thought.
Sentiment: Strong Buy
Good post, Doorsheim. No doubt tax selling, the declining price of oil, uncertainty regarding the SEC, the elusiveness of the Serrania drilling, possible dilution, and attrition due to apathy or frustration are all contributing factors.
But I was thinking today about what HUSA has going for it, and the lack of any debt to speak of really seems to be important at this point. Oil and gas companies have been hammered lately by the fall of oil prices to $57 a barrel, but the ones that has been hammered the most are those with big amounts of debt. Some may go out of business because they just can't earn enough in revenues to cover the cost of production AND their big debt payments. Now think about HUSA. Low overhead. No debt. Shareholder lawsuit settled. SEC case may be history soon. Money in the bank. Domestic deals gaining momentum. Serrania looming.
HUSA could actually be in a great position to do more deals and to ride the upcoming recovery in oil prices. That's my bet. No debt (have I said that a few times?), money to do more deals, and the ability to get more money if needed, are all factors that are going to power this company forward. In my mind, this investment company is primed and ready to go. Plus, we have a chairman and CEO who is one of the most experienced in Houston. At 66, there is no doubt that he wants to get his financial house in order before moving into retirement. What would your take be if you were in his shoes and were the largest shareholder in the company with almost 9 million shares?
Anyway, I'll load up at 10 cents if we get there before the SEC case is resolved. Just think about it. Load up at 10 cents and sell at $1. Could it happen? Its possible. But I doubt my investing skills are actually that good.
Sentiment: Strong Buy
Here is something else interesting on summary judgements from Wikipedia for anyone interested:'
"A party moving (applying) for summary judgment is attempting to avoid the time and expense of a trial when the outcome is obvious.
A party may also move for summary judgment in order to eliminate the risk of losing at trial, and possibly avoid having to go through discovery (i.e., by moving at the outset of discovery), by demonstrating to the judge, via sworn statements and documentary evidence, that there are no material factual issues remaining to be tried. If there is nothing for the factfinder to decide, then the moving party asks rhetorically, why have a trial?
The moving party will also attempt to persuade the court that the undisputed material facts require judgment to be entered in its favor. In many jurisdictions, a party moving for summary judgment takes the risk that, although the judge may agree there are no material issues of fact remaining for trial, the judge may also find that it is the non-moving party that is entitled to judgment as a matter of law."
Sentiment: Strong Buy