This stock is a piece of garbage. It will not sustain a pps above 5$ before production reach 5K boe/day level to say the least.
Its higly manipulated. Unfortunately, with an excelent environment for a great business- in Cook Inlet, It is corrupted with a Managment more familiarized with sotck manipulation than oil production. Apollo knew it and thats why the convenant related with Hall and Voyticky.
The recent events show up that timing for realeasing warrants´s swap was either a bad choice or a forced one. With a bigger debt, and only one recent well in the whole year, its not enough to give strengh to pps.
It was added to an offering that Im convinced involved the same investors that eventually swapped to preferreds and with that, filled the convenant related with Apollo Agreement. It is not my invention. They explicity told us that those investors were behind the Preferreds B offering (Buroff mentioned 10 investors)
I see that every time there is volume and pps goes up to 5$ level, something is going on behind the scenes:
In July it was Miller`s sale to an investor that not reported to SEC yet. (?)
In September it was Bristol sale of warrants.
In October it was preferreds C and RU-1 outcome.
I have to add that S3 realeasing everybody to sell their insider positions and a potential offering of 100M $ in commons. What purpose for that NOW?
In the meantime, somebody selling calls every month with inside information -imo - and a Short interest of almost 10MM shares.
So, its not a surprise we are at same levels that it was at beginning of the year.
Seriously, its just pathetic.
At some point stocks convert from concept stocks to ones valued based upon future earnings estimates. That seems to be the case here and for a while it will look as though the stock is a victim of its own success. But hang on there. If they perform as expected, this stock will break out of its rut, especially if there are more wells to rework then we originally thought.
Yesterday, it was reported on FINRA 3k being shorted. They are shorting to the upside. So, I think that people is misunderstanding the reasons of every movement.
With every pump, somebody is dumping shares via shorting. I see a strong correlation between every offering and every pump to 5$. I read a CEO saying that same investors are buying these preferreds. So, the reading is clear. Its very possible that some retailers followed the movement, shorting every time pps was close to 5$, but its easy to say it with the monday´s newspaper.
Im eager to know who were these investors behind these Series B:
""We are happy to announce the closing of our Series B Redeemable Preferred Stock program, mainly through our existing shareholders," said Scott M. Boruff, Miller Energy Resources CEO. "This sale further demonstrates our ability to raise capital, as required under our Apollo Credit Facility, and to do so without diluting our current shareholders. The proceeds from the offering will provide us with the cash needed as we continue to work to develop our assets and execute our drilling program going forward."
Mr. Miller sold 2MM shares at 5$ each (there is an inconsistency on this statment) and one month later, they collected 2.575MM in Preferreds B offering with a 12% interest and 100k of warrants.
Ok Miller, who did bought your shares? Neither a F3 nor a form 13-F (Institutions, scheduled 45 days after end of each quarter, expired Nov 15) was filled, so, who is this investor?
Two possible scenarios
1. Miller dumped his shares at open market, and He did hide it. It would be a double lie: Miller statment about a private sale, reported at 5$ and Boruff that said at CC that the sale was made 1$ above market price, something impossible those days. But the worst reading, why to dump his shares? Was he one of the investors behind the Preferreds B? Ugly if we add to the reading the recent S-3 releasing everybody to sell.
2. The buyer is hiding his stake, maybe till next 10Q - end of year. Could it be some investors with a potential take over behind the scenes? Are they the same investors in Preferreds C offering? Is a change of ownership coming?
Aahhh! The shorts and other manipulators say, "we got one." That is their program and they are very good at it. And they will take it to 5 again so you can leave. Then after another well is in they'll play the game at 5.50 or 6.00. And then one day it will be 7 or 8 in a week, when they want it, or can no longer resist the bpd.