The run up was the result of a huge pump by several stock letters and an analysis of one stock tease by stock gumshoe all occurring in the last week. The touted event was to occur at noon yesterday with the Govt making some dramatic announcement re Hep C testing. Noon came and passed and
the balloon started deflating. It is now a time to accumulate at a more reasonable price if you believe the company's Quick Hep C test kits are going to be a big winner over time. I would like to see some analysis of the expected market for same as this is appears to me to be a one time test per individual and is not like a drug which can have a longer duration demand rate per patient.
Dilution may not be a terrible idea since part of SFY's problem is a low float that can easily be manipulated with relatively small amounts of capital. I would want to see debt reduction as part of any dilution.
"According to the Securities Exchange and Commission (SEC), oil companies are required to report these reserves to investors through supplemental information to the financial statements. It is important to note oil still in the ground is not considered an asset until it is extracted/produced."
Because that is the current depreciated value of the plant and equipment carried on the books of the company. It does not include the value of the reserves. So to recreate the infrastructure and raw land position of SFY one would have to theoretically have to pay today's replacement value vice depreciated value and would have to include some additional value for the proven and probable reserves. I find SFY ver inexpensive based on the book value and the value of their reserves. If you take the Enterprise value and divide it by the Proven Reserves you get a current stock market weighted value of the most obvious reserves of around $6.00 per proven BOE. Since Enterprise value includes debt you have accounted for the heavy discounted market share
price due to the substantial debt carried by SFY. On this metric I find almost no othe small E&P with a lower
stock market valuation of its reserves.