This is what I call research. yaahooooooooo…Another bumper hit…… A trade most of you might not approve of ….. But this has now turned into a gem. yya A REAL GEM. It has suddenly turned down the blood, the last three days have put on my portfolio. I wish I had more of this one. I will be buying more of this even after this one is xxx% more today than it was yesterday. yya guess what’s in that blankxxx. Don’t open your mouth. IT IS 100% . Boooooooooooyaaaaaaaahhhhhhh
I am talking about a small company, a micro stock. I do not remember what provoked me to research on it about five months ago. I remember I was in Houston on a business trip. I was at Transocean, talking to a couple of IT project managers and Transocean management guys. Ironically after the IT meeting we were talking about stocks and companies. We talked about Westar coming public. You know what now. Don’t you?? How will I stop reading about some company that is about to come public which has made a good impression on the management of Transocean (RIG on NYSE), a pioneer and the best pick of that sector. One research page led to the other ..company fundamentals, operations, etc etc took me to a page which talked about the wells, how they work, what happens once they stop working, how costs rise and how companies struggle thereafter, and that took me to a page that talked about my pick. I’m going to show you how this made me thousands, and how it is going to make you thousands now. Yya I like transocean, I love Westar, but I want to marry TEXG.OB (only until the end of this month LOL) yya it is a ob – a otcb stock. Sorry to pick an OB. But, yya that’s what has made me about few thousands in 5 months, and it still has a lot of energy left.
My research on TEXG.OB found that the company had some wells that were almost closed or not working as of then, back in Jan. What is the reason? Company had no money to repair rigs !!!! What the heck? Why is Adarsh wasting my time talking about a company that doesn’t have money to repair it’s operations?? yya that’s what drew me near this bitch and it showed me what to do.
The company owns blocks of oil and gas leases, one covering approximately 11,200 gross acres in the aggregate in close proximity to each other in Erath County, Texas, and one covering a block of approximately 17,200 gross acres in the aggregate in close proximity located in Comanche County, Texas, both of which permit the Company to drill and develop the Barnett Shale formation underlying the lease acreage. On May 31, 2005, the Company entered into a share purchase agreement with Holywell Technological Investments Ltd. and First Finance Limited, pursuant to which the Company acquired Erath Energy Inc. (EEI). EEI’s assets include of approximately 30 oil and gas leasehold interests, which are located in the Erath County, Texas.
It’s acquisition on EEI showed that the company was trying hard to do something, to come out of problems, do something and get the attention of people. After a week or so, I got onto the train. But soon found out that the company was planning a REVERSE SPLIT. Now come on, A REVERSE SPLIT IS NOT GOOD, NOT GOOD AT ALL. My radars went mad, all dials went crazzy. They were blinking, beeping doing all kind of signals. What now? I was down about 25% since I bought. That made me look into what for were they doing this reverse split a big one infact A 1:20 split. I owned around 10,000 then. That would put me with a meagre of 500. The price tanked after the split. People started to sell and run as soon as the split finished. Why were they so mad? What to do now? I’m not a loser. I’m not selling this one on which I spent hours reading. Actually, this one taught me more about management on the oil sector, how it works. This is my teacher. I’m not betraying my teacher! ! ! I called TEXG’s Investment Services to find out what’s wrong with the company. Asked them I thought you guys said “We are reverse splitting to get the attention of the bigger markets, bigger financial sectors, to enable us to market our fields and equipment better” and that sounded to me like you wanted to offer yourselves for sale. He affirmed his stance but did not directly say we are open for sale. He said that they were looking for oppurtunities to work with bigger companies and prove their mettle. What does that mean? Booyaaaah that’s what boosts your stock price. OK then you better prove your mettle soon and make me some MAD MONEY. Kewl satisfied, actually self satisfied on my research I hung up to find an announcment in a few days.
On April 3, 2007, Terax received a notice from the Erath County sheriff’s Department that the 266th District Court of the State of Texas has issued a Writ of Execution directing the Sheriff’s office to recover the judgment amount and any other charges that have been awarded. The total amount of the judgment due is $545,065.94. That is just wonderful. They just increased their marketing arena , and now they have money to repair their equipment and start operations. That is like adding sugar coated icing on a super sweet cake. I love that!! SLURP. That drove the price crazy and I remember selling my little bunch for a profit of about 50%. Now did you see the price action last couple of months? I bought on that dip at around 1.5 and today morning woke up to find the news from Westar. I don’t want to write down the whole news. It’s here take a look. http://biz.yahoo.com/iw/070608/0263705.html
I didn’t have time to read the whole news. Just sold my bunch at around $3.5 How much profit is that?? about $2 a share on and investmen of $1.5 a share yaaahooooooo.
So what do I do now taking the news into consideration that Westar is willing to pay till $6.75 a share for those of record on 21st of this month?? I am buying more , more and more as soon as I get some money into my brokerage account. But before everybody digests the news. I will for sure not let the time pass Monday before I get hold of a huge bunch. I am willing to pay about $2.5 or more.
Good luck to ya alll…yya I know it is a bit long blog ..But this one is our WINNER so why not show some gratitude?
SM: Hope this one tries to offset the losses MPEL has brought me.