I don't see any near-tearm catalyst for Dejour. I'm accumulating and will continue to accumulate at these levels or at any price under $0.30. I'm long and will stay long through 2014/2015 at least.
While natural gas is rising and I expect it will continue to, NGLs have taken a hit and there are some people I've spoken with in the last week who believe NGLs may move sideways for the next couple of years, possibly into 2015, barring some major world event.
I'm not even sure Dejour will hit the revised six-month Zacks price target of $0.80. Possible, I suppose, but there would have to be at least two, possibly three wells drilled at Kokopelli for that to happen. And at the levels NGLs are now, I don't know that we'll see more than two or three drilled at Kokopelli before the close of 2012. Possible, but that depends on management and what it deems as appropriate. Once they start drawing from the loan, the ball is rolling, so it behooves them to put it off until the end of the year. One well, for sure, will be drilled. Beyond that, that's a judgment call.
I'm looking at DEJ long-range in that in 2014 and beyond 4000-5000+ BOEPD is realistic. Once that happens, once NG and NGLs are priced higher and have sustained, then I think all of this nonsense about a buyout will be more realistic. It's not now, because management values the company over a dollar a share, which is four times where it's currently trading. It behooves management and shareholders for Kokopelli and South and or North Rangely to be producers before a buyout or a tender offer is entertained.
I don't trade or short stocks. No offense to those who do. I just personally do not lay down a lot of money in a company to flip a stock. I see $0.23 a share as a gift. Woodrush's current production, the company's drilling equipment and leases/concessions alone are easily worth more (on the books) than $0.75 a share, so at these levels, it's a no-brainer.