Risk Vs. Reward
posted on
Feb 23, 2010 05:26PM
Developing large acreage positions of unconventional and conventional oil and gas resources
I know that usually the market gets it right. I think we are all here because we have a understanding of the potential +/- leverage of this speculative stock.
Although there are a lot of don'ts about this stock, such as;
1. Investing in a penny stock is extremely dangerous.
2. Do your DD of management and think twice about their track record.
3. Make sure they have enough money in the bank to carry on.
There are many others that we have all read and have learned by experience over the years.
The previous has beaten down the price of this stock and it all contributed to the increased potential of our leverage.
There is something about this stock that most of us understand if Ryder Scott gets it right, then most of us who has invested enough at these levels have an opportunity for a fiscal and monetary metamorphosis of relative epoch proportions as long as we invest enough to begin with, and we dont sell prematurely, conversely we will take a heavy loss with our attempt. I know of no other company that has the unproven resources this company has at this price (despite it's founder). PM me if you know of others:)
But with this extreme benefit comes a laughable risk. (Did the Beetaloo get passed over for a reason) That is the stage of where we are at right now. It seems that some on this board seems to be worried about what is said on other boards and for fear of being made the whipping boy of other boards. Especially with the recent our track record some tend to take pleasure in condemning others who risk their capitol on such a seemingly tenuous stock.
We all know by the price of this stock there is a significant chance of not being successful. "If" the first successful wildcat well flows economically in a couple of months following the monsoon season, then our risk significantly declines. Then contingent on that a few more can be drilled and if the success continues our risk precipitously declines. As we all know the price at that time will be multiples higher than we are right now. And we will never again have the potential opportunity that we have right now.
Investors, beware of the risks and benefits. This is not meant to be a rah-rah statement, but a confirmation of the risks and rewards of what we face.
Visioneer