posted
Looks like a great entry point right now to get into this bad boy. Very low float, so this thing can fly!
Seven Reasons to Buy This Stock: Though a public company, it is closely held. The total number of shares outstanding is less that 34 million, with only a little over 7 million shares in the float.
This is a conservative company with a good idea and a lot of clever and hard work. They control millions of barrels of oil reserves. The Company is debt free, and the owners are dedicated to keeping it that way. No matter which way the economy of the country goes, this company will remain solvent.
The price is very low compared with other companies doing the same kind of business. Some are trading at $7-10 a share and do not equal the stability, price/earnings ratio, certainty, and promise of Hemi.
The basic concept of Hemi's business is exactly the right thing. They carefully select underutilized, mature wells with known value and then use the latest and most effective technology to increase oil production. The Company has a huge library of forgotten information on potential and existing oil fields and previously drilled wells that they have collected over many years, enabling them to find viable sites and avoid failures.
Oil is a hot commodity, and decreasing dependence on foreign oil is an important concept. There is speculation that oil could go to over a $100 a barrel. As a hedge, many advisors recommend a position in energy stocks.
There are ancillary profit centers. Hemi owns a substantial number of producing gas wells with long-term supply contracts and billions of cubic feet in reserves. With the price of natural gas constantly escalating, the value of these reserves follows. In addition, the Company controls more than 37,000 acres in leases in Wyoming, New Mexico, Texas, and Kansas on which there are substantial, proven reserves.
There is minimal risk in Hemi's operational format. Because their portfolio is comprised of mature fields with proven reserves, production growth is not dependent on exploration drilling and the high degree of speculation in making new oil discoveries. When the time is right, however, Hemi also has the option of drilling new wells on most of the leased acreage.
posted
I did some DD'n on this and couldn't find any reason that I should be worried about this "not" going up. How bout' we get a PGPM run I'd like that
Posts: 152 | From: fla | Registered: Feb 2006
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