If Larson and his cronies let this stock go to zero, they should be forcibly removed from their homes, dragged into the town square and stoned to death. That said, I'm still not buying.
While this week’s SeekingAlpha article examined USEG’s financial position, they didn’t delve deeply enough into the real problem...Mount Emmons. According to the article, USEG carries it as an asset valued at $21.9 million even though it is regarded by the investment community as a liability. Just by flipping it to the liability section of the Balance Sheet would cut their stated BV more than in half. After that you have to reflect the high carrying cost of this liability, a nearly $3 million annual hit to cash flow, and it more approximates a junk bond yielding well over 10%. A liability such as this is perceived so toxic that it serves to even further dilute BV, yet attempting to quantify by how much is virtually impossible. Needless to say, investors have sent a clear message to the management and Board of USEG to finally divest of this albatross. Not to suggest that this is the Company’s only problem, just their most glaring in the short run and imminent that it be immediately addressed.
Ade, the solution to USEG is pretty simple...dump the mine and the stock quadruples. In my opinion, that's the message they're sending by driving the price to zero. Good luck with it.
And this won't help:
Is U.S. Energy Going To Zero? Low Debt Is Not Enough To Survive by Williams Equity Research
This article was published on Mon, Jun. 29, 1:37 PM ET (by Seeking Alpha)
The Friday article just references him as having died in 2013. This was posted on Contango's website at the time:
April 22, 2013
Contango Mourns Passing of Founder and Friend, Kenneth R. Peak
HOUSTON--(BUSINESS WIRE)-- It is with great sadness that Contango Oil & Gas Company (NYSE MKT: MCF) announces that the Company's founder and visionary, Mr. Kenneth R. Peak, passed away Friday evening at the age of 67, in the company of his family. Mr. Peak was diagnosed with an inoperable brain tumor in August 2012 that he was no longer able to battle.
From Seeking Alpha after the close on Friday:
Also, Mr. Peak is referenced in the second paragraph. As far as the other guy goes, well...you'll
just have to do your own homework. Start by googling him, then......................sorry, I couldn't
resist. Juneau was the other key senior-executive before the merger with Crimson. He stayed
on for a bit post-merger, but is now gone. Good Luck.
This more appears to me to be the work of a dedicate MM. Something may be up. Maybe the MCF/CXPO boys are planning another failed merger.