posted
Company should put out a press release. I don't know about you, but striking oil is significant...lol Come on press guy--release the news officially.
Posts: 3727 | Registered: Jul 2004
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quote:Originally posted by JimSC: Hi, JJM. Please go to Ihub and read all the exciting msgs. Some memebers went for a field trip and posted pictures of the wells.
quote:Originally posted by JimSC: Pictures of new wells:
Posted by: seesaw103 In reply to: stevo51 who wrote msg# 9941 Date:2/15/2008 10:11:11 AM Post #of 9950
Lot of good things to look forward to:
- Cash flow positive by 2Q - Dividends- -New CUSIP/ transparent share structure - Oil oil oil (need I say more?) - Hard working legit CEO who hates the current share px
Posts: 3228 | From: Michigan | Registered: Aug 2005
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posted
Rule 144, effective Feb. 15th, 2008, may be very good for SGGC,since it has high percentage of restricted shares. They can not dump it anymore. **** Rule 144 "Safe Harbor"
Rule 144 provides a fairly clear way to sell restricted stock in the public market without running afoul of the law. It offers "safe harbor" protection to sellers who follow the five main requirements. Essentially, these are: 1. Holding period. You must own restricted stock for at least one year before you can begin to sell it in the market. The clock starts running when the stock is fully paid for. 2. Current information. The issuing company must provide adequate current financial information. If it reports to the SEC, it must be current with required periodic reports for example, its 10-K or 10-Q. If it is not a reporting company, similar information needs to be publicly available. 3. Volume limits. Only a limited number of shares may be sold during any three-month period. You can sell the larger amount of either: 1% of the total outstanding shares of the class being sold or the average reported weekly trading volume for the last four weeks, if the class is listed on a stock exchange or Nasdaq. (Stocks quoted on the OTC Bulletin Board and Pink Sheets use only the 1% measure.) 4. Ordinary brokerage transactions. Sales must be handled as routine trading transactions with a broker or a market maker. And you'll need to sign a Seller's Letter to the broker confirming that the sale complies with Rule 144. 5. SEC filing. When you place your sell order, you must notify the SEC by sending in a completed Form 144. If the sale doesn't take place within three months, you have to file an amended Form 144. No filing is required if your sales for any three-month period total less than 500 shares or $10,000.
Legend Must Come Off
Even if you've satisfied Rule 144, you still can't resell restricted stock into the public market until you get the restrictive legend removed from the certificate. And only the stock transfer agent can do that. The transfer agent is usually a specialized outside firm appointed by a company to maintain stock records. It issues and cancels certificates; deals with problems like lost, stolen or destroyed certificates; removes outdated legends; and handles other such chores. But the transfer agent's authority is limited. It can't erase a restrictive legend until the issuer of the stock says it's OK to do so. Issuers usually require an attorney's opinion letter before they give the green light for this. The letter is often written by issuer's counsel, but the seller frequently must pay for it.
Removal Takes Time
Because of the paperwork required, the number of parties involved, and the logistics entailed, it takes some time to have the legend removed. The period varies. It usually depends largely on the transfer agent, the issuing company and the attorney who reviews the matter and writes the opinion letter. We find the entire process often takes three to four weeks, and sometimes significantly longer.
Restrictions End in 2 Years
Rule 144 restrictions end after you've owned the restricted stock for two years provided that you haven't been an affiliate for at least three months. After the two-year point, you may sell the stock in the public market without further concern for the rule, although you still must have the legend removed first. You can put Rule 144 in a nutshell this way: Year 1 = no selling Year 2 = limited selling under Rule 144 restrictions Year 3 = sell freely [Ed. note: Although control stock is outside the scope of this article, note an important point here. If you're a company affiliate, your stock is always considered control stock and is always subject to most of the Rule 144 restrictions. That's true no matter how you acquired it, or how much time has passed even if it's registered stock that you bought in the public market.]
General Steps In 144 Sales
With all these extra legal requirements, a sale of restricted stock under Rule 144 is more involved than an ordinary sale. When you sell restricted stock, a broker familiar with 144 requirements can help guide you through the steps of the process. The drill usually goes something like this:
First, the broker confirms that the stock is in fact restricted by reviewing information you supply and then contacting the transfer agent or issuing company, if required; He or she helps you complete and submit SEC Form 144, as well as the Seller's Letter; They help determine your volume limitations; They help obtain legal and other needed approvals to have the legend removed; They follow up on questions, monitor the progress of each step, and honcho the process until the new "cleaned up" certificate comes in; and, finally, they execute the trade for you. In summary, restricted stock differs in substantial ways from free trading stock. Sales of restricted shares are carefully regulated, involve extra steps, and take much more time than normal transactions. On the other hand, the stock may be attractively discounted to compensate for these limitations. It will pay you to keep these factors in mind whenever you consider buying or selling restricted securities. Editor's Note: The authors Ron Nicklas is president of Pennaluna & Company, a NASD broker-dealer and market maker with its main office in Coeur d'Alene, Idaho, and clients in a number of states. Tom Wobker is a principal with the firm. Founded in 1926, Pennaluna trades stocks on all U.S. and Canadian exchanges, Nasdaq, OTCBB and Pink Sheets. Phone 800-535-5329 or visit www.pennaluna.com. The firm offers online 0discount trading at www.penntrade.com.Posts: 3228 | From: Michigan | Registered: Aug 2005
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posted
Good information Jim. Still waiting on merger news--love the close Friday. Hoping tomorrow brings continued movement upward! Feeling pretty good about this one.
Posts: 3727 | Registered: Jul 2004
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posted
Nice volume this first hour of trading. Still flirting with 006. Come on MMs, move it already! Posts: 3727 | Registered: Jul 2004
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