Here is the letter that management & the board of Directors would not answer. Beneath them I guess.
RE: Questions for the Board of Directors
Does it bother you to be a Board member of the only public oil and gas with a market capitalization over $ 20 million to be selling below book value ? 46 % at that.
Does it bother you that , despite losing $ 21.5 million in 17 of the last 18 quarters, the Board of Directors authorized a management compensation study ?
Does it bother you that , in return, it appears that management authorized a Director compensation study ?
Does it bother you that you authorized $ 180,000 in stock option to USEG's non executive Chief Pilot who happens to be the brother of the Chairman. Would you have taken the same action were there no family relationship ?
Does it bother you that USEG has lost $ 42 million in market capitalization since mid February ?
Does it bother you that management has never purchased shares of USEG in the open market ? Until recently, management was not even required to own shares.
Does it bother you that every new JV interest announced in the last 3 years has been dreadfully delayed versus the original projections of management ?
Does it bother you that , despite selling at 46 % of book value, management would prefer to enter JV arrangements with a significant promote price rather than buy in USEG's common stock ?
Does it bother you that ,despite losing $ 21.5 million over the last 4 ½ years and $ 42 million in market capitalization since February, the Board evaluated a management compensation study but yet management felt no need to request a shareholder value enhancement study ?
Management nor the Board show no outward concern for the stock price of USEG. Over 8 % of USEG's market capitalization is invested in a jet despite the Company operating nothing but an apartment complex.
Buba thanks for the post. I was thinking about investing in this company. I like everything about this stock except the nepotism. and lack of concern for shareholders. I think there is real opportunity for this stock to run but I will invest elsewhere. There are a lot of great oil stocks right now. I am looking for small cap with exposure to Bakersfield. Anybody have any suggestions?
There is Berry of course but I'm looking for something smaller.
I once asked a Board member of USEG if he was ever able to get management to estimate the value of USEG excluding Mt. Emmons. He says he asks but cannot get an answer. Given the huge discount to book value currently, were I a Board member I would DEMAND an answer or management could hit the road. I guess I am use to making management accountable to all shareholders instead of just management & the Directors. These Directors are just there for the ride imho.
I doubt you would ever get a reply. Obviously, they don't care for things in print. Who can deny the legitmacy of your concerns. I doubt these folks even know the corporate holdings. Of course, this is all just MY OPINION.
Nice to see you sent them something tangible versus just posting on this board.
Plenty of SH dissatisfaction and disappointment to go around and justifiably so.
Major tute's and mutual fund holders of this dismal performing stock must not be happy campers either.Looking at the short position of a low float stock one would assume there would be a much larger percentage short,,,,,why isn't there a larger short position ? must have something to do with the lack of interest and low volume trading of this co's stock.
Simply ..... Management sucks ..... and it seems they have the BOD's on their payroll .... how else could any Management team employ so many friends and relatives .... loss so much money .... constantly make serious bad decisions .... grant themselves compensation beyond belief, including benefits and fringes normally awarded for a successful profitable company .... this group of misfits have been picking the pockets of the common shareholders for years and still manage to maintain control of USEG ... in my opinion they should have been kicked out years ago ..... but when you have family on the BOD's and in key company positions, what else would you expect .... and you expected them to be concerned about the common shareholder ..... fat chance .... they only belong to be one place ..... and you know where !!!!!!