Why the price spike? Is it end of year tax loss buying for the shorts? The OE is in port in Hull. Is there a court decision that has gone OMEX's way?
Take another look at the risk. This isn't just normal risk, where if the market turns against you or the company has bad news you could lose 10% to 30% temporarily depending on the event. This is full blown survival risk, where if the company can't get sizeable financing soon, they will be forced to file bankruptcy and you would lose 100% permanently.
Just look at the current liabilities in the latest 10-Q. They went from 4.6 million at end of March to 9.8 million at end of September while the current assets decreased from 1.6 million to 1.1 million during the same period. Now most of that increase is because their loan is due in full in August of 2015, so it went from long term liability to current liability, but a year can go pretty quickly. The price of oil is going against them, and is likely to continue going down for the foreseeable future.
If you want to gamble a small amount of your holdings, like 2% or less (and not every year), then even in the worst case scenario, you should still have the rest of your portfolio to carry you through going forward. This is not the kind of stock where you back up the truck. You don't want to end up having it repossessed.
Its one thing to place a couple of small wagers at the black jack table and leave regardless of the result. Its another to take everything you have and place it on a single number at the roulette table.
Manage your risk. Don't back up the truck on this one.
The apparent increase in revenues and earnings seen in the first quarter can now be viewed as just a blip. Obviously, investors had bought into INFU hoping that the third quarter would be more like the first quarter, with a substantial increase over the previous quarter. Instead, the third quarter was barely more than the second quarter, which was off substantially from the first quarter.
Third quarter revenues were 16,613 million, off from 17,242 million in the first quarter, and not much more than the 16,372 million in revenues in the second quarter. In the last year, shares outstanding have gone up by about 2.5%.
With 4 cents a share in earnings, this company had been sporting a PE of over 20 before todays sell off.
Of course it doesn't help that the COB Ryan Morris is under investigation for stock manipulation by the SEC. It also doesn't help that Mexico is looking into his activities as well. This company would do well to put some distance between itself and Ryan Morris before the SEC makes formal charges.
Please Gar, Never try to get a job as an accountant for a company. You would cause the company to fail within a month with your lack of understanding of a balance sheet.
Since the value of the gold they have recovered is more than 125% of the amount of their day rate that is required to be paid in the contract with RLP, OMEX can bill for all of their day rate. Since the money has been billed and there is a good expectation that it will be paid, it is booked as revenue and becomes an account receivable until it is paid.
As you know, the M was not the same situation. Because no silver was found on the M, the expenses for the M would not be expected to be repaid.
The expenses of the Mercedes including the attorney's fees would have been a miniscule amount compared to the recovery if the court case had gone the other way. At the time they learned that if they leave it to the courts to decide, it becomes a roll of the dice. That is why they don't operate that way anymore.
Of course, maybe you are trying to claim that the appeals in the SS CA case mean they are rolling the dice again. My response to that line of argument is that each of the entities that is appealing the ruling is really a proxy for Thommy Thompson. What do you think the chances are that the fugitive TT is going to show up in the courtroom and try to claim rights to the recovery?
Not much chance of that. He'd be arrested and have to explain what happened to the gold he recovered that should have been shared with RLP.
It looks like a good move to me. They have removed the dead weight of Ryan Morris and may be able to sidestep some of the SEC investigation that has arrived at his door.
As to the acreage deal, it should keep them from bankruptcy for this month. It is not clear just what acreage they are purchasing or how much they are paying, so it is difficult to say how long the money will last. I still think this company is far too risky to be worth an investment.
For me, with Ryan Morris gone, I no longer have any interest in the company, so this is my last post here.
LEI is not in a good place as oil prices plummet. Cash flow that is already negative is going to get worse. What bank will loan on oil to a company that has practically no record of producing it? With stock prices dropping throughout the oil sector, what oil investor is going to throw money away on this loser?
Even its vaunted asset rich fable dwindles with the drop of each dollar in oil price.
It looks like they will run out of money this month. They need at least $4 million to be able to meet their drilling responsibilities. Figuring that they will receive 35 cents per share at most, that means they will have to sell almost 12 million shares to get the money they need. If you had $4 million, is this where you would tie up your funds, or would you stay in cash until the bottom is reached? If you would not buy at 35 cents a share, why would you hold at 39 cents a share?
Without a large cash infusion, an LEI bankruptcy filing could happen any day. Shareholders will no longer have to worry about dilution or delisting events, and they won't have to waste their time reading through the 10-Q for the latest quarter, hoping for an indication that LEI will eventually be able to spud a well.
It looks like LEI could skip the 20s and 10s entirely in its one way elevator ride, and head straight for the basement of bankruptcy.
Agreed. If a reverse split happens, it will be paired with selling off a significant portion of the company at a lower price (percentagewise).
Every day without a deal to resolve the dispute is a day closer to bankruptcy.
Thank you for the number. I ended up trying 611, but since I have Verizon it connected me to them. They provided the same number you gave. I was able to find an option to talk to a person.
A technician arrived at her apartment about noon on Friday, and her phone was working by 4 when I tried calling her. A little time consuming, but a good result.
I can't help but wonder what the requirements are for delisting that they were in trouble in March, but haven't been delisted at this point. Does LEI have to report financials more frequently than quarterly to the NYSE?
Or do they just get into trouble with the NYSE when they stop making their payment to them for listing?
Their cash can't hold out much longer.
Ryan Morris is still a director, doing what he thinks good directors do. Waiting to see who the next best candidate for CEO might be. Someone ought to boot him off the board.
You clearly are. Me, I just want an answer.
The phone service is out. She can't call for herself. And I don't have an AT&T bill myself to try to figure out what the correct number is to call. They have done everything they can to make it impossible to actually reach a person.
Stop being such an idiot.
Someone I know is having a problem with her phone ever since an AT&T representative worked on her working phone a week ago. He left her with no dial tone. To help her out, I went to the AT&T web site to find a phone number or an email address to try to request service.
I couldn't find any email address to contact anywhere on the AT&T site. They did have a phone number to call for home phone service, but when I called the number, there was no option to speak to an actual human, and the system was designed to presume that the wiring and everything was correct, and that something just needed to be rebooted. Nothing worked, and I wasn't able to talk to anyone to request proper service. It was a very frustrating and time consuming experience.
I was able to find an email address for a PR person at AT&T. It seems to be the only email address that is accessible. I'll let you know if they contact me back.
If anyone knows a better way to contact someone at AT&T for service let me know.
With no announcement that they have resolved the dispute, it looks like no well will be spud by December. When the quarterly report comes out, it will show just how little cash they have left. Its only a matter of time now.
If everyone else was able to read Murph's trade info and understand it, what is your problem. It is almost as though you use your distortion mirrors on everything, not just OMEX.
By the way, can't help but think that your alias sounds a lot like a water softener company.
Wow! LEI is up a couple of pennies today. Everyone enjoy the view. It looks like they've pulled into a scenic turnout and slowed the descent for a moment. Brace yourself for the next leg down.
Overly ambitious? Not at all.
If Mako waits until December to exercise the options, the price will have increased to 3.30 million per 1%, making the whole of Oceanica worth more than 330 million if Mako exercises the options.
I figure they probably have about $40 million in gold ingots and coins recovered from the SS CA. They get all of their costs and just under half of everything else. After considering the loans they took out, they probably will have close to $20 million left.
There are considerable restrictions on when insiders can make open market trades. It would clearly be a solid indicator if they did make purchases.
They don't have to have funds available to announce a buyback program. It clearly wouldn't be the best use of capital at this moment, but if the announcement were made, and later the Mako options were exercised, buying a million shares at this price wouldn't jeopardize the company.
Why do they need a separate ship for off season excavation? Because excavating the SS CA during the off season would likely cost them the Zeus due to rough seas.
It is unlikely you will see evidence of army gold on board until they bring up some 50 lb bars. In the meantime, they have over 12 acres of video to go over to see if something like that is recognizable.
My guess is that the ammo cans filled with gravel were used as ballast for the TT excavation. It isn't clear to me whether the cans were arrayed in rows when they were found or whether they were moved into that position. The ties look like something OMEX does when they are getting ready to move things around, so maybe they found them scattered about, attached the ties, and put them all together to bring up at once if they found that they contained something of value.