Thread by @KushMansPicks

1/ Once in awhile one runs across a penny stock with 86,584,989 shares issued, management that doesn't rape it with exorbitant salaries, management fees, conslutting fees & share-based compensation & works within its revenue stream incurring minimal losses before write off's..

2/ Unfortunately it's not a #PotStock.

It's a 'PRODUCING' #NatGas play with:
$50,957,000 cash +
$13,912,000 Acc. Rec. +
$31,729,000 Property, plant & equipment =
$96,598,000 in total assets which converts into an asset value of $1.11 per share..

But wait.. That doesn't ...

3/ incl 7.4 million boe of externally audited reserves valued at $88,000,000 as of Sept 30.19 bringing the total to: (96,598,000 + 88,000,000) = $184,598,000 which brings the total asset value to: $2.13 per share.

So what about the liabilities you ask.

Guess what??...

4/ ... There aren't any..

What about operating costs?
Other than $213k they were covered by current revenues of $10,487,000 for the first 9 months.

5/ So why did the stock close at $0.48 on Friday?

Ever hear the term 'blind sheep leading blind sheep' or 'stop loss selling'?

A news release on Fri came in with lower than expected results which cause panic selling which in turn caused stop loss triggers to get pulled...

6/ Problem is the blind don't realize that the lower than expected reserves are NOT A LIABILITY to the company. They are an ADDITIONAL ASSET and the demobilization of equipment is a standard procedure after a wireline or frac job.

Standby costs for said equipment are...

7/ .. are astronomical .. Attached are a couple of pics, one of my buddy standing beside my frac rig back in the late '70's and a wireline truck on a wireline job.

My rig was a v16 worth $950k back in 1979 so you can imagine what they are worth now

8/ .. and then you have 'stop loss' sales.

Did you know that institutions have them also & they are bound by corporate governance?

So when you get one house pounding a bids relentlessly who do you think is selling?

An insider? In this case, why, the company is sound & a cash..

9/ .. cow and share value is inevitably going to increase again as soon as the 'herd effect' dissipates.

Makes absolutely no logical sense for an insider to bail right now.

If anything they should be buyers.

So what's the co name you may ask?

10/ $VLE | @ValeuraEnergy and the chart is begging for a couple of gap down fills at .096 and 1.64 and there should be no reason to hold it back considering they are getting $$9.64/1,000 cubic ft where as the US price is currently $2.31/cu ft.

Thanks Santa 🤶🎅🤶🎅

messed up the wireline truck pic .. Seniors moment 🥴

$VLE - Anon must have oversold on Fri as they're in the top 3 buyers this morning.. 😂😂😂

$VLE - So far 7.8m shares have come between 2 houses since Fri. (Anon & CIBC)..

Whoever is dumping certainly doesn't own more than 10% of the issue otherwise there would be a declaration on file.

86.5m issued x 10% = 8.65m

Gotta be close to the end of it.

$VLE - Looks like the dumper has set .50 as his magic number as very little has come out below it..

This is not a bunch of people that have decided this co is overvalued.

It's tax loss selling from way up there.