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[QUOTE]Originally posted by Purl Gurl: [QB] DVPC - Dover Petroleum Corporation My first thought is investors shoud exercise some caution before investing in this stock. I find positive points and negative points, to be equal. Appears to me chances are fifty-fifty this stock will do well. Dover Petroleum is clealy a company involved in oil and gas exploration. Here are some snippets from their latest 10Q filing, with approximately sixty million shares outstanding. ** Cash and Equivalents Year 2002 2,726,269 Year 2003 208,555 Total Assets Year 2002 7,889,273 Year 2003 7,557,978 Total Liabilities Year 2002 4,079,874 Year 2003 2,859,518 Accumulated Deficit (loss) Year 2002 (1,159,341) Year 2003 (1,414,935) Revenues - Zero ** You may read their latest 10Q filing here: [URL=http://www.sec.gov/Archives/edgar/data/1166801/000107938204000003/form.txt]http://www.sec.gov/Archives/edgar/data/1166801/000107938204000003/form.txt[/URL] Dover's latest SEC 10Q filing doesn't appear all that bad to me, as an opinion. They are about a million and a half in debt, which seems relatively minor compared to most companies I research, in the "start-up" category. Assets have improved significant and liabilities are showing signs of decreasing. On assets, they have purchased a lot of mineral rights, which is good, but a reader should discount the value because actual oil and gas content, are unproven for all save for one Wyoming site. This is a snippet from "bad news" coming out of Egypt. "In summary, the well was drilled to the target formation at 7,310 feet drilled depth in the Nubian...Unfortunately, no hydrocarbon indications (oil) were encountered in the cuttings, cores or on these logs and the well is in the process of plugging and abandonment." There are some other problems with different test bores at other sites in that news article which is titled: "Dover Petroleum Corp Announces Drilling Results for EWA-3X" That news caused some investors to panic sell driving stock price down to an "absolute" bottom support around ten cents to eleven cents per share, down from a healthy support price at eighteen to twenty cents per share. Stock price has not and will not fall below an average of ten cents per share. This is the best price, currently. Here are two snippets from "good news" recently released. "In summary, Dover is pleased to announce that its Colorado/Wyoming assets appear to contain commercially recoverable quantities of natural gas and that construction of a 6 inch, 18 mile long pipeline to take the natural gas to market is expected to begin in the spring of this year." "...as an example only a single well flowing 1.5 MMCFGPD will, at today's prices, generate over $2.75 million in revenue annually." That is from a news article titled: " Dover announces significant natural gas discovery" I have, logically, some personal opinions on Dover stock which should be taken with a grain of salt. Their test bores over in Egypt, I do not believe will prove to be profitable for at least a year, possibly up to two or three years. Each bore hole costs $250,000 to $500,000 which is not cheap and will require either financing or common stock sales. Whichever, they will either be more in debt or stock value may suffer some dilution. Even is they struck great oil reserves today, I would still discount this because of costs involved in bringing a well online, supply lines, processing and distribution. For those reasons, I would not expect any revenue to be generated for a very long time, based on finding oil in Egypt. However, a good oil strike would cause speculative price rises, immediately. That is only speculative value, not true monetary value. There are no indications they will strike oil anytime soon. Natural gas, our family is hedging a bet their natural gas strike in Utah - Wyoming, will pay off very soon. There are significant costs involved, first. It does appear Dover has a company to install delivery pipelines, with deferred payment until after profits start coming in. This is a positive. My opinion is Dover will begin displaying profitable revenue by this Summer. Nonetheless, a reader is to be cautioned. Test bores for natural gas appear to be promising. However, a well of this type could dry up in no time at all. Currently, test flow is very good but actual total cubic foot content, is not proven. Clearly, there are some extreme risks involved with Dover stock. Oil in Egypt, doubtful anytime soon and more costs will be incurred. Natural gas strike appears promising but there are no assurances they will prove profitable. Equally clear, Dover must incur more expenses before any profit can be made. This might be through loans, through common stocks sales, or possibly both. There is a risk of value loss because of increasing debt or dilution. Nonetheless, we hold an opinion Dover will remain at an average price of ten cents to eleven cents per share, regardless. Some of our bet is we won't lose money, but stand a chance to make money. Dover strikes me as either a "no loss" type investment or a profitable investment. We are currently in for 10,000 shares at ten cents per share and plan to accumulate up to 50,000 shares before long. I am not a professional investor. I could be very wrong in my opinions. You could lose some or all of your money. Perform very good research and make prudent decisions independent of my opinions; I could be leading you to loss of money. Purl Gurl [/QB][/QUOTE]
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