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PENN OCTANE CP Message Board

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  • rrb1981 rrb1981 Jul 9, 2004 9:09 PM Flag

    Too many bashers on this board

    I have asked multiple times and nobody has answered. I would have thought all of the dyed-in-the-wool longs would be quick to answer....

    I'll repeat the question:

    1) What is going to happen to the stub. I suppose nobody actually knows what I mean when I say stub so I'll explain. POCC is going to spin off(or should I say plans to) an MLP called Rio Vista. Rio Vista will hold a large majority of the assets. So perhaps the ratio will be something of the sort, you get one share of Rio Vista for every 10 shares of POCC that you own. So, post spin-off, you are left with 1 share of Rio Vista and 10 "stubs", shares of POCC worth maybe .20. So are they going to reverse-split it 1 for 100 to get a $20 price for POCC. My guess has been that POCC management will let it get delisted and either "relieve" shareholders via a buyout that the corrupt BoD will most likely sign off on and then they will have control of the GP.

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    • buylowsellhighagain02 buylowsellhighagain02 Jul 10, 2004 10:18 AM Flag

      After reading some of your "I know it all about MLP's", what could anyone contribute or why? Since you don't own any stock so you say, its like coaching a team on the field from the lazy boy in front of your television. If you were really wanting to find out the current facts of the company, you can call the CFO or CEO. They both take calls and have been very responsive to questions. Going into Mexico was a entrepreneurial risk to begin with, knowing how it difficult to get straight stories out of the Mexicans from day to day. Trying to diversify out of a situation that did not turn out as originally planned, is a smart thing that takes time. The stock price is a speculative perspective of where the stock is. Management is still the ones who put the sweat in to start the company and are major stake holders in its future. I doubt that you or I would be operating any different if we were in there shoes. I am a shareholder and have been for some time. I am not happy with the stock price, but I am also a entrepreneur whom understands speculative situations. Sometimes they don't always work out as dreamed, but then real operators learn to adapt and refocus their energies and resources to restructure for another day. Since you know all about MLP's, this structure is not an unusual situation for a small and struggling firm. There will be a turning point soon. That is where the real risk and reward as a stockholder or potential stockholder "goes big or goes home" financially. The stub will probably be sold off by many because they won't understand its value. That my friend has historically been a great time to buy that item, when no one seems to want them. If the company is successful, they will have to address that item in usually a fruitful way to the stub holder. The real initial action if any, will be on the MLP shares. Rightfully so if they are paying out. That item will be the potential currency to buy small firms to roll up into the MLP to enhance value for all. Why there is no guarantee on these items, blue cheese has a smell to it, but it can be very tasty to the right persons. If your not a dice roller, this stock will not be for the average talker. Do some real do diligence and then come back to tell us about your experience on this stock. That will make a qualitive post to talk about. Good luck.