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Isramco Inc. Message Board

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  • bobcarlton_2000 bobcarlton_2000 Nov 8, 2000 1:54 PM Flag

    And a message for ISRAMCO

    Ditto!

    Why is this company even public?

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    • If you are a long term holder of Isramco, by now
      you should be seeing "the Big Picture", that is, why
      Isramco is a publically traded company.

      Oil and
      gas wells in Israel cannot be defended by the Israeli
      military, period. Any wells in Israel must be preceived as
      international operations, just like all the other oil wells in
      the Middle East. Thus, Isramco was created.


      As an international company traded on the NASDAQ and
      based in Houston, it will do this (Isramco isn't based
      in Houston, yet, but it will move it's head office
      there if they ever operates a large number of wells in
      Israel). The purpose of Isramco is to own a tiny
      percentage of each well in Israel, and OPERATE them. If
      anyone blows up a well, now it is a crime against the
      West, and a crime against a US traded public company,
      and not just a well in Israel being blow
      up.

      Since operator fees for wells run maybe $50,000 per
      month per well, plus a share of the royalities, this is
      not an insignificant role. But the idea that Isramco
      would go in 25% or 50% or 100% on a well in Israel is
      wishful thinking - doing that violates it's unwritten
      charter. Isramco will always own one or two percent of a
      well in Israel, then operate it, to shown
      international ownership.

      As far as the stock holders,
      we just don't fit in. When the royalities start
      coming in from operations, the profits of Isramco will
      be feed right back into Isramco, and/or other TASE
      securities and stocks. They will never issue a dividend.


      This is not a negative statement. In fact, if you hold
      onto Isramco for another decade, and things go well in
      Israel, you may find this type of company, run in this
      fashion, will have unlimited growth.

      • 1 Reply to stocksitter
      • This makes a lot of sense and I had wondered if
        maybe this was the deal. One question though. Assuming
        the purpose and plan is as you say, and it seems it
        is, why then would Isramco not issue dividends etc.,
        to get more interest, and wider ownership, in its
        stock. ADM, Cargill, etc. are giving a few thousand
        farmers little pieces in their ethanol plants and getting
        tremendous dividends on Capitol Hill as a result. Why would
        these people not do the same?

 
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