I actually agree with a lot of what you say. DISCLOSURE: I am long. I have about $2,700 in this stock--not a lot
I did have a great handle on the BJ Petro thing, but since then, the company seems to be pretty quiet. At first, I thought it was because they were working hard and were trying to recover from such an obvious screw up. Then, when they brought on Miller, I called this a 'hail mary' and said that the company was giving itself a chance to make it. At that time I bought some stock. I like a company that gives itself a chance for success.
But this is a 'throw away' investment--I can lose everything I have invested here. I don't trade it, I just bought it to wait for 6 months.
The broker on the BJ Petro deal does call me often. He claims to be on to the next scam (he is NOT inside Indigo). He tells me that he has people inside the company but since he is unreliable, there is no need to give you hearsay within hearsay, within hearsay. A good or bad comment from this guy is meaningless.
But the few people inside the company that asked me to help unwind the BJ deal do talk to me from time to time. I kept them from spending another $600K+, so I get some phone calls returned. I don't get secret information, any of you can learn the same thing from talking to someone you know inside any company.
Here is my read on it--for what it is worth:
I am actually not very big on management. I think they are inept. I think that they have everybody in the company afraid for their jobs and afraid of their shadow. They are overbearing and demanding--and they work their people hard and are not very good at what they do. The employees are so afraid of being out of work that they are afraid to make a mistake. Consequently, they are caretakers, not action types. They do what is asked, but not much more.
That being said, let's face it, this is not a Harvard MBA type of company. There are no financial instruments to evaluate or M&A investment strategies to execute. There are no investment accounts that need hedging. There are no legal documents where good lawyering will produce results. There are no office building to lease and manage--and therefore no opportunities to create value through creative transaction structure.
This is an oil drilling company, and if they can accomplish that and produce some oil, they will make money and the stock price will reflect it.
My investment in this company is NOT a bet on management. It is a bet that they WILL release some news that will make the stock jump. That's all.
The fact that they company completed some wells but gave no geology reports or estimates of yield is very troubling. But my hope is that they are timing that announcement for a time when oil prices are higher, so that they can announce an aggregate number (not numbers of barrels or gallons).
My guess is that the want a big number. If they can say, "the geologist's reports suggest that there is a hundred million dollars worth of petroleum in our operational wells," then this will mean something. But if they say, "we have 1.7 million barrels of petroleum reserves underground" this this just does not mean as much.
I'm waiting--and not offended by your skepticism.
On the other hand, you want some tips. WalMart will go up 6 points in 3 to 4 months. BAC will fall below 6 in the next 2 weeks, but will go back above 10 by August. C is in for a short term slump, but there is a short squeeze play--be careful and monitor the volume.
RMBS (I'm in a 9.40) will go to 15--maybe higher, but sell at 15 to be safe. Pepsi is in for a 20% pop. AutoNation is about to break a 200 day moving high--it will go 20% higher.
DELL is a good 8 month play. Moving production overseas will generate huge cash flow. Stock will double in 8 months.
"Indigo-Energy, Inc., an independent energy company, engages in the exploration and production of natural gas and oil in the Appalachian Basin located in Pennsylvania, West Virginia, and Kentucky."
And the title of their recent press release of Friday, April 3, is as follows:
"Indigo-Energy, Inc. Completes the Drilling of Natural Gas and Oil Wells in the Illinois Basin"
And inside the company, and I do know this, these are referred to as the wells or the oil wells. Nobody really calls them the "natural gas wells." Maybe it is just harder to say, maybe it is more words, but the truth is the truth.
I have been candid when I gave information and I was candid in telling you people about the holes in my story.
If it is not semantics, and it makes a difference, then tell the company.
BUT, MAYBE YOU ARE RIGHT.
THEN THAT MAKES MY POINT. IF THE COMPANY IS A NATURAL GAS COMPANY AND IT DESCRIBES ITSELF IN TERMS OF OIL AND GAS (AND ITS PRESS RELEASES USE BOTH TERMS), THEN THAT MAKES MY POINT ABOUT MANAGEMENT INCOMPETENCE!!!
THANK YOU. EITHER WAY, I AM RIGHT!
NOW, QUIT TRYING TO "OWN" ME AND GET SOME INFORMATION WE CAN USE!!!