Since graduating Rutgers University (B.A.) in 1990, Tom has worked in the financial industry in various capacities. visit www.equitiesresearch.com "in this day and age of digital speed and lightning trading, Equities Research continues to use a CALENDAR to measure investments and... More
Houston American Energy Corporation (AMEX: HUSA) traded at a 52 week low yesterday before closing @ $6.52. Stockdiagnostics downgraded HUSA @ $17.25 on May 23,2011 after the company reported 1st quarter financials for the period ending March 31,2011. In less than 10 months since the downgrade, shares are down 62%. click to HUSA Stockdiagnsotics OPS chart
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the company did disclose in their 10Q's that operational cash flow was negative, it shouldn't be a surprise the shares are down and that they needed cash.
it was a joke in regards to the links that populate Google finance's news stream on this stock. anytime a company's pps drops, a bunch of lawyers start advertising with pr about how they are going to start an investigation, blah blah blah.
anyway back to HUSA, how can a $15 stock drop down to $1.50 over the course of a year, and not be tempting as a bargain play? only if the light at the end of the tunnel is not a train.
If an underlining business continues to record poor operational cash flow statistics (decline) then there is no reason to ever own those stocks. a battered stock becomes a bargain if they can turn their cash flow around (grow)
and what is the crystal ball that will reveal if they can turn their cash flow around? that is the million dollar holy grail.
after doing some more research in $HUSA, I found out their CEO John F. Terwilliger was previously the chairman of the board and president of both Moose Oil & Gas Company and Moose Operating Co, who declared backruptcy on April 9, 2002. http://onforb.es/M3qJGo
So I don't know if you can say "this person has a bad track record", or if there was other circumstances surrounding the backruptcy of Moose, i.e. the 2001 terrorist attacks and resulting recession.
HUSA has mentioned the oil fields they are involved in have capability / possibility of high production, but can you believe it? plus the uncertainty of drilling for oil / starting a new well...
They did manage to raise addition capital approx 9 million, so there must be people who believe them...
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Houston, We Knew There Was A Problem (Cash Shortfall) 6 comments
Houston American Energy Corporation (HUSA) announced today that they completed a $13 million offering.
A look at the Operational Cash Flow charts of the 1st & 2nd quarters of 2011 signaled there was trouble.
below are posts from my website. (www.equitiesresearch.com)
April 19,2012
Houston American Energy Corporation (AMEX: HUSA) traded at a 2 year low this morning @ $1.97. Stockdiagnostics downgraded HUSA @ $17.25 on May 23,2011 after the company reported 1st quarter financials for the period ending March 31,2011. In 11 months since the downgrade, shares are down 88%.
click to HUSA Stockdiagnsotics OPS chart
click to HUSA Stockdiagnostics OPS 5yr chart
click to HUSA Stockdiagnostics FCF chart
March 7,2012
Houston American Energy Corporation (AMEX: HUSA) traded at a 52 week low yesterday before closing @ $6.52. Stockdiagnostics downgraded HUSA @ $17.25 on May 23,2011 after the company reported 1st quarter financials for the period ending March 31,2011. In less than 10 months since the downgrade, shares are down 62%.
click to HUSA Stockdiagnsotics OPS chart
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anyway back to HUSA, how can a $15 stock drop down to $1.50 over the course of a year, and not be tempting as a bargain play? only if the light at the end of the tunnel is not a train.
a battered stock becomes a bargain if they can turn their cash flow around (grow)
after doing some more research in $HUSA, I found out their CEO John F. Terwilliger was previously the chairman of the board and president of both Moose Oil & Gas Company and Moose Operating Co, who declared backruptcy on April 9, 2002. http://onforb.es/M3qJGo
So I don't know if you can say "this person has a bad track record", or if there was other circumstances surrounding the backruptcy of Moose, i.e. the 2001 terrorist attacks and resulting recession.
HUSA has mentioned the oil fields they are involved in have capability / possibility of high production, but can you believe it? plus the uncertainty of drilling for oil / starting a new well...
They did manage to raise addition capital approx 9 million, so there must be people who believe them...
just read the financial statements every quarter.
.
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