goodhumor05, I'm sitting on over 900,000 shares. I've not sold a share since taking a position in 2011. The story is very good and the fundamentals of this company will soon improve dramatically with eight new wells coming online in the next 6-8 weeks.
Having said that, this is a stock that's littered with retail investors who do not understand the big picture. Moreover, while I understand that it's easier to move the needle with fewer shares outstanding, I also acknowledge that a reverse stock split will not be received well by a lot of retail investors. The stigma alone is a problem for the company, given that the vast majority of the time a reverse stock split is done out of desperation and an attempt to hang on and buy more time to maintain listing requirements. My point is I'd much rather our company do a reverse stock split on our own terms at the time of our choosing rather than being forced to do so by the NYSE/AMEX.
Hodgkinson also has stated publicly that he is not in favor of a reverse stock split. I'm guessing that he voted against it at yesterday's meeting.
I'm long and strong here and will remain so, but in a stock widely held by retail investors, it's simply not a positive that we're getting another letter from the NYSE/AMEX regarding a compliance issue.
Management will have to be increasingly active in updating shareholders once the additional eight wells are placed into production before the end of Q3. It is imperative that the market - namely retail investors - see that our fundamentals are changing before the reverse stock split is executed. It would also help if Coachman moves forward with its 10-well drilling program at South Kokopelli, which we will now have at least a 25% working interest following Mr. Hodgkinson's recent loan to the company. I believe it's possible we can get the additional 10 wells done in Q4. I don't think anything gets done at North Kokopelli or Roan Creek before the end of the calendar year.
Sentiment: Strong Buy
Just in time for Hodgkinson to deal Kokopelli in the spring after a deep vertical at North Kokopelli is completed. Take a portion of the proceeds and drill the deep vertical at Roan Creek and we're on our way. Those events would totally transform this company.
You don't think JNJ drops back below $100 here in May? That brief bump in the $98+ range was as good as it gets from a pullback standpoint?
Sooner or later management will have to give this further consideration.
If they let this thing push up to $180-$190+, my sentiment is that it'll be a 3-for-1 stock split.
nourjianb, thank you very much for the insight.
We have been on and off again at or around the $100 mark for the last year. I think when we move past $100 a share for good and we're in the $115-$120+ range, perhaps more consideration will be given.
I think within the next year staples like JNJ, KMB, PEP and MMM could give more consideration to a split. I'm surprised MMM has gone this long without a split.
Thank you again for the firsthand report from the meeting.
The bluest of blue-chips. Never sold a share and never will. One of my top three - holy trinity - dividend stocks: JNJ, KO & PG. Never lost an ounce of sleep on these stocks.
Tremendous American stalwart company. First stock I bought my son.
Would like to see a $3.00 annual dividend and a split. The stock would pull back slightly after the split which would prompt me to back the truck up later this summer.