They have good reservers and slowly they prove it, but unfortunately they do not have cash or they cannot borrow cash at low rates to drill. When most of other companies can borrow money at 3-4% interest, DEJ has to give away a lot of WI or very high interest rate or even offer stock options.
For example, they borrowed $3.5 mil and will have to pay full amount within 2 years, plus 14% interest, plus 7.3 mil of stock options at $0.24. Stock options worth nothing, but If as DEJ claims their reserves worth $1.4B, or $10 a share, they will pay back $3.5 mil + 14% + $73 mil...
When banks and other investment companies see the value in DEJ's land, and start lending DEJ money at 3-4% interest ONLY, or whatever other business pay to borrow money, that would be a sign that they have gained back the trust of the banks. I believe slowly but surely they are getting closer and closer to that point, and investors will lend them money on better terms for DEJ.
Sentiment: Strong Buy
You don't prefer hot air? Why not. There's an abundance here. Then again they are all trying to sell their shares to another sucker. Everyone willing gamble with Dejour ALREADY owns shares. Everyone is holding and waiting. They have lost over $80M getting these small holdings developed. All on the backs of shareholders so no one gives them credit anymore. They could fix it by selling some of their $1.4B in assets. Sell a tiny portion for $30M and develop with that. Why not?? Guess they like financing with credit cards essentially.
I think there is only one out!
I don't agree with an asset sale unless it were a huge chunk of change and then it would probably go to salaries and bonuses - as in the past.
Here is what I think should be done:
a) Management takes a big salary cut (good faith indication).
b) They declare that there will be no more equity raises for at least two years.
c) They squash any idea of a R/S.
d) They pay off high interest loan before any more borrowing.
e) They treat retail investors as owners - not a source of endless funding for salaries and bonuses.
If this were to happen I could see $1/sh and guess what???
Management have shares and everyone wins!!!!!
This is the first hour of trade. Keep in mind that typically DEJ has disappointed so this stock is not on everyone's radar screen and the first thing they are looking at in the morning! As DEJ comes out with favorable stories and meets market expectations then you will see the immediate bounce you are looking for. In the meantime, DEJ has to earn the markets respect IMO.
Sentiment: Strong Buy
With oil and nat gas rising in the third and fourth quarters, with Kokopelli production hitting the balance sheet in August and throughout September, you can be sure that top-line revenue for Q3 will be close to $3 million, which will again smash Zack's revenue estimate.
Earnings drive a stock and now it's here for Dejour from this point forward. The unvarnished truth about any company lies on the balance sheet. And it's finally going to be here for this company. With that and with proven, producing reserves rising, this is why the stock price will ultimately move higher.
People have been waiting for a long time for this, and a lot of prospective buyers have been timid because of the company's lack of execution to this point. But that's finally abated with the Williams Fork portion of Kokopelli.
Sentiment: Strong Buy
Yes to many I am a nut case. I am not shamed by my beliefs. Jesus is my lord and he gives all Christians three rules to live by. Love God, Love People, and Make disciples through out the world. It bothers me to think that people will burn in Hell. I try not to judge people, but I do at times. It is God's domain to judge and my responsibility to share his word from the Bible. Lord, help theunrealfacts here. You go ahead and bash me and my God, I said all that I need to on this topic. I guess you don't have an answer to my question?
I would prefer to see a nice ramp up in production and financial performance with a lagging, but appropriate, steady rise in the stock price. I am in DEJ for the long term, so these one day gaps don't do much for me. I want to see the company build its reserves and become a real company, like UPL did back in the day. Pump and dump schemes do this industry an injustice. When the time is right we can then sell DEJ to a company that can efficiently get the natural gas out of the ground.