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Ilene is an editor at Phil's Stock World, Market Shadows and other financial publications. Her educational background is in biology, pathology and law. After working in biochemistry and pathology during her graduate years, she attended Law School at Loyola. She practiced law in a number of... More
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  • Don’t Stop Believin’ - Shorting HUSA Again  9 comments
    Sep 23, 2010 10:55 PM | about stocks: HUSA
    DARK HORSE HEDGE – Don’t Stop Believin’

    By Scott and Ilene 

    Dealer holding dice

    Working hard to get my fill
    Everybody wants a thrill
    Payin' anything to roll the dice just one more time

    Some will win, some will lose
    Some were born to sing the blues
    Oh, the movie never ends
    It goes on and on and on and on

    Don't stop believin'

    Journey, Don't Stop Believing


    Last weekend we wondered “Where do we go from here?” and so far the answer is nowhere.  The S&P 500 closed last Friday at 1125 and today at 1124.  We went through what thus far would be classified as a false breakout on Monday as the indexes continued the strong September showing but have traded lower every day since on continuing worries about jobs, or the lack thereof. 

    HUSA however has inched its way back up to $9.87 during that same period and triggered a 4th DHH recommendation to SHORT HUSA.  The reasons have been well chronicled in past editions and so we won’t recite them again other than to repeat the song “It goes on and on and on and on”.  Nothing has changed about HUSA since the first SHORT on July 1, 2010. 

    SHORT HUSA at the open Friday, September 24, 2010

    Chart by - click here. 

    Disclosure: none
    Stocks: HUSA
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Comments (9)
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  • ed stanton
    , contributor
    Comments (4) | Send Message
    like a moth to the flame - you about to get smoked.... (btw where's your stop-loss?)
    24 Sep 2010, 01:57 PM Reply Like
  • CramerFactor(SellWhatHePumps)
    , contributor
    Comments (208) | Send Message
    like a what to a what? smoked? Ed, you need to go back to whatever you were smokin and doing before you found SA yesterday. Houston American Energy is a windbag of nothing. Do you call into Cramer at night too?
    25 Sep 2010, 10:30 AM Reply Like
  • ed stanton
    , contributor
    Comments (4) | Send Message
    Boy are you stupid – it’s a Shakespearean reference which alludes to someone being irresistibly attracted to that which leads to their downfall –perhaps you should read “The Merchant of Venice” – But why do I waste my time?!.... And I’ve known about SA for many years – it’s worth every penny you pay for it! – Also know Cramer personally. He’s a lying crook who will tell you to do one thing while he does the other – but that’s ok, his ex-wife is also a backstabber and his two daughters both hate him, so no I don’t call into him as I don’t have anything to say to or ask him and wouldn’t take his advice… But HUSA on the other hand is not a windbag of nothing – Mark Cuban wants you to believe that so that he can cover his short at lower prices, and he has published a lot of non-truths, half-truths and mischaracterizations to successfully manipulate the stock lower, however there is a LOT of good news that is going to come out of HUSA and oil drilling in SA, so short stock if you want, but just consider yourself fore-warned….
    26 Sep 2010, 02:26 PM Reply Like
  • CramerFactor(SellWhatHePumps)
    , contributor
    Comments (208) | Send Message
    Ed, Why do you waste your time? You are on SA which you claim is worth what you pay for it.....nothing. You are hyping a stock, husa, which has done nothing but spout off like a wind bag while paying bonuses over over $600k in the last quarter to these 3 bankruptcy drivers. You have the million times a day "good news that is GOING to come out" bull. The stock is incredibly overvalued no matter who or how it got there. $300 million market cap on the penny of earnings they CLAIM to have made and then shelled it out to themselves as a bonus. You have been pre-and-fore warned and sounds like you have sour grapes over the 50% haircut it already took. Look dude, every stock has people who like it and people who don' seem way too personally invested going off calling me stupid over a simple investment.....if you are right then hats off to ya. I could care less who you know and who's ex or daughters feel anyway about Jim Cramer. Time will tell which side is right on this one but history of these guys is on my side as is Mark Cuban's record for being right. You see, he is a billionaire and your guys have only taken companies into bankruptcy so far and are using this public stock like their own personal bank account.
    Keep shorting HUSA all you want Ilene and we will see who is right.
    4 Oct 2010, 04:58 PM Reply Like
  • ed stanton
    , contributor
    Comments (4) | Send Message
    Actually Cramer, I am not hyping any stock – not at all – I don’t care if anyone wants to buy or sell – that’s up to them – I was – and am still warning people not to heed this advice from people who I don’t believe have done any real research and asking Scott and Ilene where is their stop-loss? (and find it interesting that they refuse to respond, but instead I get you and your nonsense) or are they just going to continue to “fight the tape”?… I actually am extremely happy about the recent 50% haircut – you see I bought my stock under $4 a year ago, sold it up in the high teens this past spring and then was fortunate enough to buy it under $9 this past summer – so I’m sitting on nice profits and it’s all “free money” from here on… I’m long term though, and intend to hold for the next couple of years, as I’ve done a lot of my own research on the geology of the Llanos Basin in Colombia and the drilling landscape there … Another question I have for Scott and Ilene is this – other than reading an article written by a guy currently under investigation by the SEC for insider trading, what proprietary research have you done to convince you? and which should persuade me to short this stock? – And Cramer, you better read that 10Q again, because this company is profitable, w/ a solid balance sheet, and not going bankrupt anytime soon – They also have an enormous amount of people working for them, but I’m not going to do your work for you… Valuation, by the way, is based on future prospects, not past earnings… have you ever invested in biotech, internet or E&P before?.....It’s all speculative, and highly risky of course, but my experience (>40yrs) is that you better have done your homework, and know your scenarios and risk/reward levels going into a binary event… I’ve done mine and am very comfortable holding a long position… from both a fundamental and a technical perspective…. But, nonetheless, good luck, and have a nice weekend….
    8 Oct 2010, 01:37 PM Reply Like
  • CramerFactor(SellWhatHePumps)
    , contributor
    Comments (208) | Send Message
    Edward. Another question for you on all the research you have done. Found this odd statement in the 10k filed in march and can't find the conclusion but with all your research you can probably answer this.


    Item 11. Executive Compensation


    The information required by this Item will be included in a definitive proxy statement, pursuant to Regulation 14A, to be filed not later than 120 days after the close of our fiscal year. Such information is incorporated herein by reference.


    Why would a company not disclose the executive compensation in their 10k? Looked through all the filings I could find and don't see the promised proxy within 120 days but do see the bonuses and 10% increase.


    What does your research show Edward?
    8 Oct 2010, 07:57 PM Reply Like
  • CramerFactor(SellWhatHePumps)
    , contributor
    Comments (208) | Send Message
    Eddie, Eddie, Eddie.
    I did as you ask and went through the SEC filings in detail. Here is an eye grabber from the August 10q.
    Compensation Expense


    In June 2010, our board of directors approved, and we paid, cash bonuses to our senior management team totaling $637,500 and, effective June 15, 2010, we increased the base salary of members of our senior management team by 10%.


    Also in June 2010, we modified the non-cash compensation arrangements for our non-employee directors to provide for annual grants of stock options to purchase 25,000 shares of common stock. The option grants vest on the grant date, are exercisable at the fair market value on the grant date and have a term of ten years. Pursuant to such revised compensation arrangements, we granted 100,000 stock options to non-employee directors on June 15, 2010 and recognized non-cash compensation expense totaling $1,006,807.


    Looks like these 3 or 4 mindless pumpers are putting the cart before the horse wouldn't you say. How in the world can you justify these bonuses on a speculation play. This fits right into what Cuban talked about in his findings you pompous moron. If you did your homework you would see that she is playing with house money already as she has shorted this heap of maneur 3 times already and made over 10% each time.


    This is a windbag full of hype from 3 Texas duds who have a history of doing exactly that. Hype, hype and more hype. Your claim of research in Columbia is laughable.


    The balance sheet shows $12 million cash and with the salaries and bonuses being shelled out to the 3, yes that is 3, employees it is merely a shell for them to use for their personal pleasure.


    Have a good weekend and good luck but I am not impressed with your claims. You haven't done any research but are just hyping your position. You are long, she is short and now we will just watch and see who is right.
    8 Oct 2010, 07:48 PM Reply Like
  • ed stanton
    , contributor
    Comments (4) | Send Message
    More non-truths, and mischaracterizations that I will address not for your sake Cramer, but for anyone who may actually believe your nonsense… First of all let’s address the compensation/stock options. According to SA, HUSA stock is up 91% ytd and 217% in the past 1 year – As a shareholder who has made a tremendous amount of money, I want management to be well paid and incentivized to continue making more money for us shareholders – And of course I’m happy to have them hold lots of stock so they are also rewarded when the stock goes up – I would, in fact, argue that they are underpaid given what they have already earned those who have held stock…they are not as you claim using the company as a “shell for them to use for their personal pleasure” – which is actually (and almost verbatim) how Ross Perot described Mr. Cubans use of the Dallas Mavericks (more on that later). You say they have done nothing, but facts are facts… and they have already generated real profits on what they have invested and have a history of creating wealth for themselves AND shareholders such as the latest example when they sold their working interest in 6,000+ gross acres in Karnes County for $1.65 million while the company still retains a 1.25% overriding royalty interest which will provide future cash flow free of all costs. Not a bad deal considering they paid $250,000 for this acreage 18 months ago… I’ll admit that this is small (it’s also a very small part of the company!) but so is the “chump change” that you’re upset over… Here’s some more real factual truths for you… Lee Tawes does not live in Texas, he lives in New York and is no “dud” – his history includes graduating from Princeton and going on to become one of the most highly regarded equity analysts on wall street – (at goldman sachs) He was then recruited to become head of research and a partner at Oppenheimer when its research department was considered one of the best in the world – When CIBC bought OPCO, Lee became very wealthy and retired to become a full-time investor… He made a fortune investing w/ his personal investments, but he came back to work at Northeast Securities because he has good friends there and enjoys spending time there – While he has what to many may seem like a large stake in HUSA stock, to Lee it is just one of his many investments…. If HUSA goes bankrupt tomorrow, it won’t change Lee’s lifestyle, he will still be a very wealthy man…. I was first alerted about HUSA by John Olson, one of the early investors and also one of the most highly regarded E & P analysts ever – (go ahead and Google John Olson Enron) another early investor was energy analyst Carol Coale (enough said)… More facts…. Mark Cuban, a man Donald Trump once referred to as a loser who got lucky once and has lost at everything he has done ever since, is currently under investigation by the SEC for insider trading – If you read the facts in that case it’s a very ugly picture of a man who cheated, lied and clearly broke the law– what is astounding is that he risked everything to save himself 750K – for a “billionaire” this is rather bizarre behavior - You should ask those who bought his stock (there’s a winner for you) if they would trust him! - Ross Perot, who sold Cuban the Dallas Mavericks but retained a 5% stake (so he has access to the books), this past May sued Cuban, alleging that the once profitable franchise, which has lost money every year since Cuban bought the team, is now either insolvent or in imminent danger of insolvency – I’m not going to address his behavior w/ the team other than to say that he has consistently been breaking rules/laws and fined countless times…. rather bizarre behavior again and many (including his players) have questioned his sanity… but that’s your guy You can choose to believe who and what you want, and go ahead and short the stock, but please stop w/ the non-truths and mischaracterizations… and by the way, I am not hyping anything at all (though it seems to me like you are!)… just fed up w/ all these non-truths out there on worthless websites… and yes, we shall see who gets the last laugh….just don’t confuse hype w/ the facts…
    11 Oct 2010, 08:32 PM Reply Like
  • CramerFactor(SellWhatHePumps)
    , contributor
    Comments (208) | Send Message
    "they are not as you claim using the company as a “shell for them to use for their personal pleasure”
    Explain how you view the bonuses paid of $637,500 if not a shell for their personal pleasure. This is over 50% of the so-called profit of the company.
    "and they have already generated real profits on what they have invested and have a history of creating wealth for themselves"
    Could you discuss Moose Oil in more detail and explain how or what history they have of creating wealth for themselves.
    Hyping a stock up 91 0r 217% may have made you money but the way to create long term shareholder value is to generate consistent, growing earnings. There are dumpsters filled with shares of companies who promised everything, delivered nothing and eventually the paper was worth more than the company. I don't have any idea who Mark Cuban is or why you are so hot under the collar about him.
    You made some glossy statements above that are unsupported by facts so feel free to take your time and rather than name-drop. Fill in these glossy claims with some facts.
    13 Oct 2010, 02:08 PM Reply Like
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