I've traded commodities and stocks for 25 yrs. and for the life of me I can't understand how this stock price can be so low, given the properties this company owns. I guess it's some ill timed equity raises in the past. But right now any of these properties by themselves are worth a lot more. I've been buying some along for over a year now. Unless I'm missing something, I see no reason DEJ can't be at least $3. based on these properties alone. If there's something I'm missing please point it out. I don't mean by these idiot paid bashers, but by some numeriacal numbers, please. I trade stocks to make money, not salve my ego.
Sentiment: Strong Buy
Your logic is sound. The value of the property is worth more than $1 - if the Company went bankrupt right now we would get more than $1pps. Simple as that. That's what people don't get and that's why I keep buying. Although, the Company never would go BK because no fund would borrow $6.5M, no $BB Company would enter into a JV to drill and no insider would execute the purchase of options at this low price if the Company even had a chance of dillution or BK.
Here is the mentality of the board, they are buying when they say this Company sucks...classic game of I want this thing as low as I can and I will do whatever I think works to get it there. All knowing that it's worth 5x pps minimum right now. Once KOKO comes online, we will be over $1. I expect Roan Creek to come online this year as well with 3 JV'd wells. Energy policy is changing to export which will make properties worth even more. WPX hit monster wells which should help with reserve valuations.
In the meantime, they will continue to buy - one big fish in particular. Buying at a HUGE discount - would not suprise me to see an unsolicited offer on the Company once the cheap shares have been baught up. More than likely this would coorespond with KOKO production as that would be a catalyst for higher shareprice. THE PPS IS WHERE IT IS BECAUSE ITS BEING ACCUMULATED.....they sit on this stuff for years, shaking ever last weak hand out there, saturating the sponge until it can hold no more - and once all have left they offer a bid and buy the last remaining few shares for a premium. Question is, are they going to be buying from you?
" I can't understand how this stock price can be so low"
I have one word for you as the reason why.
Still not down to my price point 'FOR A TRADE ONLY" Plus I'm not going to be sitting in here for the next earnings either.... No Friday close for earnings again, for me!!! .... Longs... Remember that one????
With all due respect, realize that minne was burned here in the past,...so his price point will be the lowest imaginable and then some. It won't get there. I really do wish that Minnie was still invested here and showing huge gains,..he's a good guy imo
Sentiment: Strong Buy
I don't understand it either. Their properties are outstanding, you can go on the cogis drilling permit site look at all the big name boys that are in Garfield, Rio Blanco & other counties. eca,bbg,wpx,chv,oxy, noble, all billion $$ compianes, Our properties are right in the middle of them and some even adjoin. Properties alone $3 agree! As for ngw I am only referring to the properties. Not all your bs about management this, deadlines that, hedge fund bs. Properties only! The land don't change.
You're describing what may/ may not be a value trap, but some of us who own shares hope they can become more productive as NG prices rise. A microcap this small with no earnings is worth whatever the market says, in this case a few cents per share, and presently sinking lower daily.
You have to respect the trade and the chart, which shows huge overhead, and selling recently on good news tells this is a hated stock. I own a tiny lot of DEJ and have traded another O&G micro - IONAF, and I recommend it strongly over DEJ because the chart is so strong, pushing up to an all time high this week.
You could see more profit in that name in a week than DEJ will give in a year - it is that hated.
I do recommend this chat board - the slow mental melt of the adamant longs is more entertainment than youtube!
"the slow mental melt of the adamant longs is more entertainment than youtube! "
Have truer words ever been written?? I laughed so hard I almost wet myself after reading your post! Congrats on your owning/trading IONAF....nice little company that should soar higher in the months and years ahead.
well there's the hedge fund that sold out recently, and dej's management that with holds material info and misleads shareholders, management also never makes any project deadline. could it be one of those reasons the price is so low. I'm perplexed also with all the pumping around here why is the stock price falling?
there's maybe a few more reasons like 150 million shares outstanding, not being profitable, over paid officers, a board of directors bigger than the Knights of the round table, a field crew that can't get a well into production after 6 months of work, an IR dept. that sucks, low cash, growing debt, I'm perplexed also.