Kerri Cunningham

Kerri Cunningham
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  • Corridor Resources - Debt free and sitting on 50 TCF of natural gas  [View instapost]
    Curious as to your thoughts on Corridor Resources now given the latest disappointment in the Elgin wells in New Brunswick?
    Feb 24, 2011. 03:22 PM | Likes Like |Link to Comment
  • Diamond Offshore: Market Sentiment Is Shifting, Rare Opportunity Is Ending  [View article]
    Fair enough. You mentioned management. One of our key factors in analyzing a company to determine potential for upward movement in the stock is great management. In regards to an oil & gas company we look for strength in sector background including years in industry. I don't see a whole lot of that here. Perhaps you can provide your thoughts on why you see management here as a big positive? I am not saying they are bad, but don't see an extensive amount of experience. Would love to know your thoughts. Thanks.
    Nov 3, 2010. 02:36 PM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks  [View article]
    Listen, stop pumping this stock to this board....your arguments are completely off base and inaccurate. Unfortunately for you I do know what average means....but I also know how people manipulate numbers for their advantage...which is exactly what you did. Real Estate doesn't sell for "average" price. Proper presentation would be to highlight the range. Your math was misleading which is I'm sure what you were trying to do. Do you really want to go through all my points and tell me how they are dubious...unfortunately for you they are direct quotes from the 10-K. I know you don't know much about the oil & gas industry and are just trying to pump this stock....if so you should be ashamed of yourself trying to take advantage of people by throwing out as you call them "dubious" numbers. Yes I will admit I missed the cash number...which was actually an honest mistake because I was trying to respond to your "dubious" posts quickly enough so someone wouldn't get taken by them. Would you like to tell me that the related transactions are dubious or inaccurate? How about the difficulty and high cost of drilling in the Barnett Shale...which would be a disadvantage to a small Company. Let's look at 2009 natural gas revenue was affected by price...what is natural gas at now? Stop me if I'm throwing out "dubious numbers" Let's look at customer concentration...I'm not sure what was "dubious" here as it was clearly noted in the 10K....yes, lets do the math if the Company loses one or both what percentage of revenue would be lost???

    You throw around words or phrases such as "PV-10"....really? According to the 10K "management estimates costs to develop the land".....that piece of information is interesting because you have to ask yourself where does management get that number and how accurate is it? Oh, by the way...a 10K is the company's annual filing with the SEC. The "SEC" kind of frowns on pump and dump.

    Stop while you are somewhat ahead and go open your "hedge fund"...would love to know what experience would allow you to do that because it is clearly not evident here.
    Oct 29, 2010. 12:02 AM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks  [View article]
    Hester, why do you refer to yourself in the third person...hmmm...but I do know what PV-10 is as a matter of fact its the estimated gross revenue from the production of proved reserves, etc.....I thought I would let everyone else on the board in on that one since you don't seem to want like throwing out facts and figures assuming others won't know or won't bother to find out....c'mon Hester...go pump another stock.

    Spindletop is a high risk investment...but then again you wouldn't know because you like low risk high return.....ummmm, ok??

    You mention the average selling price in Dallas right now...what you fail to mention is it goes as low as $30/ sf...but in the interest of full disclosure it could also go as high as $200/ sf. You see I too learned long ago to use numbers to my own benefit. But then again you said "property value appreciates over time"....woo hooo....let's party likes its 2006!!!

    You mentioned "excess cash"....ummm I don't see "excess cash"...I see a cash balance and debts to be paid....shareholders wouldn't see that "excess cash" until after debtholders are paid.

    Let's look at a few concerning items..."M-R Oilfield Services, LP is an oilfield service company which provides to the Company, roustabout, swabbing and completion services at rates which are at or below market. This limited partnership has Chris G. Mazzini and Michelle H. Mazzini as its limited partners. This oil field services company currently does work exclusively for the Company and its related company, Giant Energy although it has contemplated doing work for unrelated third parties as well." Chris Mazzini is Chairman, CEO, Michelle Mazzini (Wife of Chairman/ CEO) secretary, treasurer and director.

    "The Company along with Giant Energy Corp. entered into a Farmout and Exploration Agreement dated August 22, 2006, with Williams Production-Gulf Coast Company, L.P..... " Interesting fact here is that Giant Energy is owned 100% by Chris Mazzini.

    "Gas revenue for 2009 was approximately $3,582,000 compared to $10,364,000 for 2008, a decrease of approximately $6,782,000 or 65.44%. This was due primarily to a drop in average gas prices from $8.41 per Mcf in 2008 to $4.13 per Mcf in 2009, a decrease of $4.28 per MCF or 50.89%." Hmmmm......what are gas prices now??? Also, Spindletop has two customers who comprise approx. 59% of purchases.....loss of one or both could have a substantial effect.

    "The Company re-evaluated its proved oil and gas reserves as of December 31, 2009, and decreased its estimated total proved reserves by approximately 145,000 EBO to 2,410,000 EBO at the end of 2009 compared to 2,555,000 EBO at the end of 2008, a decrease of approximately 5.68%"

    "The Barnett Shale is a thick blanket type natural gas bearing stratigraphic zone found throughout the Fort Worth Basin-Bend Arch Province. The natural gas reserves in place are significant; however, as a consequence of the extreme low permeability character of the shales, it has been technically challenging to
    produce these reserves."...i.e. high cost for those playing the home game.
    Oct 28, 2010. 08:40 PM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks  [View article]
    Interesting Hester. Apparently you have not been paying attention to the financial issues over the past few years when you say "property value appreciates over time". You mention an "independent third party" valued the reserves? Who? Can you assure anyone that it was not a friend of the CEO or CFO....I am DEFINITELY not saying it is but I have seen it before in this industry and I have also been through the time where reserves for various companies were vastly overestimated. Also, do you know enough about the industry to understand costs involved? I'm guessing no. The reserves are only as good as someone is willing to pay for them or you can cost effectively drill for them.

    I never said that Spindle did not have value...but please give people on this board something better than an uneducated break up value. You too mention the value of the building, the book value of cash on the make is sound like these numbers are not encumbered. Did you bother looking a little below the assets? Those things are called "liabilities".

    You "think" Dallas commercial real estate and gas prices are headed up? And what knowledge base did you get this from?

    I would like to see, as I'm sure others would, more educated analysis on this company or are you looking to just pump up the price on this stock? Do you own any shares (that would be very telling)?
    Oct 28, 2010. 03:06 PM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks  [View article]
    Good point. However, who is the counterparty that is going to make the losing proposition to hedge at these prices? There are Co's who are diversifying their operations and slowing down gas production.
    Oct 28, 2010. 01:38 PM | Likes Like |Link to Comment
  • Roadkill: Natural Gas Stocks  [View article]
    I am not saying these are bad picks or bad companies as I have not had a chance to review them. But I am curious with you, as the author, how you got to some of your assumptions? For example in regards to Spindletop:

    "I estimate the cash and true value of the building is worth nearly $1.45 giving you the oil and gas reserves for free"; The building on the books as of 6/30/2010 is @ $1.5M. To get any money out of this for shareholders assumes that the building today is worth what it was paid for and that it can be sold (both big if's in today's economy). Also "oil and gas reserves for free"? I haven't had a chance to review their financials so perhaps you can enlighten me...who valued those reserves? Was it an internal review or did they hire a reputable outside consultant to review? What are the drilling costs associated with these properties...i.e. could the properties pop up on someone's acquisition radar or are the costs prohibitive?

    "First of all, the company has $1.13 per share in cash and a stock price of only $1.45." Ok, I can see how you got this one $8.5M in cash on the as of 6/30/2010 and 7,630,803. But what you fail to recognize is the a/p, notes payable and asset retirement obligation which would most likely have to be paid in event of liquidation before shareholders.

    It may or may not be true that this has a little room to run, can't say I haven't reviewed their financials...but not based on your assumptions above if this company were to fold today (which there is no reason that it should).
    Oct 28, 2010. 01:22 PM | 2 Likes Like |Link to Comment