The idea that this company is worth $1 billion is pretty funny.
Who is Avondale? See an AvondalePartners, which is the official trademarked name and thus not the same as "Avondale."
If your belief about a company's potential is based entirely on opinions from company press releases, you will eventually lose your shirt.
Here's my reasoning. Many of the shale oil producers produce some natgas as a byproduct. If they shut down those wells, because cheap oil makes them unprofitable, that means a reduction in US natgas production. That pushes up the natgas price, which is good for producers that are mainly in natgas, like XCO (also SWN and COG).
Open-minded discussion, please....
The cost of keeping the lights on is an operating expense.
I'm mainly looking at who will be driven out of the game at around $65 oil. It looks like PWE will survive and then benefit once the high-cost producers close shop and the glut is reduced.
Am I reading this financial statement correctly, when I conclude that PWE's cost of production is around $22 per BOE?
$21 operating expenses
Two years ago, this stock had a market cap of $50 million and sold for $1.50. Now it has a market cap of $100 million, yet sells for less.
Figure it out yet?
From 2012-2103 it lost $10 million. From 2013-2014 it lost almost $20 million. It lost $5 million in the most recent quarter, and a few million in every quarter before that.
Its operating cash flow has been negative $10 million every year in recent memory.
Yet, it received TSA approval well over a year ago, which (we were told) was going to turn it into a skyrocket.
Figure it out yet?
Pump, dump, pump, dump......
The company was pawned to DMRJ a long time ago. There's nothing left for the common shareholder to claim. If you can't read the fine print in SEC reports, you shouldn't be investing.
I have a small position, at around $4.xx per share. Tempted to add more, but the current liabilities, compared to current assets, worries me in view of the very low gas prices. How is it going to maintain enough cash flow to stay liquid?
From the last quarterly report.....
"In January of 2014, the Company sold 50,000 shares of its common stock for $.20 per share, or $10,000, to one investor who was a shareholder in the Company. "
"In January 2014, the following converted their notes into common stock at $.20 per share: John and Priscilla Zaontz converted a $15,000 note and interest into 82,500 shares; Hoi Ping Lee converted a $25,000 note and interest into 137,500 shares; Darryl Zaontz converted a $25,000 note and interest into 137,500 shares of stock. Each of these individuals was also issued shares as additional consideration as called for in the notes, which totaled 14,000 shares."
"In April 2014, the Company sold 115,000 shares of its common stock for $.40 per share, or $46,000, to three private investors. "
"In April 2014, the Company issued an aggregate of 35,000 shares of our common stock to two individuals for professional services. These shares issued were valued at $.40 a share or an aggregate price of $14,000. "
"In May 2014, the Company issued 15,000 shares of its common stock for professional services for $0.40 per share, or $6,000."
"In June 2014, the Company issued 40,000 shares of its common stock for professional services at $0.40 per share, or $16,000."
This company is nearly bankrupt. It has negative working capital, negative book value, and no chance of revenue for many years. It's going to dilute shareholders one way or the other.