The Midway Trend is one of the most exciting areas of Oil and Gas drilling in TX today!
We have a great GUN RANT!! Make sure you read it and either get mad @ us or get mad @ the Liberal Media!!
OIL OVERVIEW & OIL DRILLING PROGRAM OFFERING.
FACTS TO CONSIDER:
US production fell by a sizable amount stated within the last report by 29k bpd to 8.72 million. During April 2015 production hit a high note of 9.7 million barrels/day.
Demand side both gasoline and distillate consumption trends are bullish.
Market looking more and more re-balanced as falling US production and supply disruptions ease global glut.
Nearly 4 million barrels/day of lost production because of new and old problems- Libya, Nigeria, Kurdistan, Sudan,Canada and Venezuela. The near term financial collapse of Venezuela could be that straw that breaks the camels back. Venezuela production during May 2016 lost 120k barrels of production/day. There is no investment and companies like SLB are pulling out. This mean no drilling and servicing of the wells. This country is headed into a cataclysmic spiral that has the potential to create a major spike in crude pricewithin 6 months. The US imports around 800k barrels/day from this Socialistic failed state ( Bernie are you watching this implosion?).
Keep in mind that oil prices are often inversely related to the dollar. A strong $ due to higher interest rates here in the US compared to Europe/Japan has been a major headwind for the commodity. With interest rate hikes expectation slashed, the dollar gets weaker and adds Bullishness to crude prices.
Look @ the rig count- As they say numbers tell the whole story! The rig count for Oct 10th, 2014 was 1609 as of June 17th 2016 the rig count has crumbled too a merger 328!!! These numbers produce a reality that NOW is the time to invest in oil drilling programs that are economically favorable!
Total Global consumption/day is roughly 96 million barrels/day. Please visitwww.yardeni.com/pub/globdemsup . This 40+ page document will allow you to see worldwide production by each producing country and region in the world.
We currently consume 19.4 million barrels/day, Saudi Arabia produces 10 million barrels/day and consume over 25% domestically, especially during the summer months when temps elevate into mid to low 100's. Oil infrastructure is always a major flash point around the world at anytime . Iraq is fighting ISIS in the North, but there is always the possibility that Islamist's could infiltrate the southern part of the country and severely pressure the production of oil that is the only life blood of this war torn country. The Southern part of Iraq produces the majority of their 4.5 million barrels/day and even the whisper of ISIS penetration would cause the oil market to spike. We believe that Iraq uses between 1.5 and 2 million barrels/day for domestic consumption including the conflict against the Sunni (ISIS)Islamist Caliphate. OPEC's unplanned crude oil supply disruptions averaged 2.6 million b/d during May 2016.Nigeria had the largest drop in production of over 800k barrels/day because of the "Niger Delta Avengers" militants. It is believed that OPEC only has a surplus of 1.5 million b/d in 2016 and 1.3 million b/d in 2017 in potential production.
All the above factual material indicate just how tight the world Oil market really is at any moment!
Please keep this in mind! The so called professionals had estimates of Oil dropping to $18/barrel (CNBC) and that Gold was going below $1000/oz.- Reality check Oil is $50.00 and Gold is $1270/oz.
DIRECT OIL & GAS OWNERSHIP PROJECTS
We truly believe this is the best time during the past 10 years to invest in Oil and Gas drilling programs. We have avoided these programs for the past 1 1/4 years because of the severe drop in crude prices and of course waiting for a re-balancing. Quality acreage & rigs have become more available for small independents, which have created an attractive environment for their specific business model. THESE SMALL OPERATORS ARE DEBT FREE AND A WINDOW OF OPPORTUNITY HAS DEVELOPED.The majors have been forced out of the domestic game for a while leaving room and opportunity to acquire quality leases & as mentioned better rig availability .
Midway Sand~ This Sand is a high pressure flowing sand that does not need to be FRACKED! The many wells in this Sand are becoming the largest producers in Texas. The MIDWAY TREND is an area of Drilling that is getting a lot of attention.
Near term we believe that Crude will stay in a trading range of $45-$55 during the balance of 2016 ( temp. weakness might occur during early fall before heating season). We at SAAdvisory believe that it is time to jump at this entry point with exceptional upside on crude prices during the next 6-12 months due to the glut of oil disappearing and demand picking up with a very slow rebound in drilling and this severe under spending of CAPEX.
During 2014 CAPEX for E&P was $741 billion~2015 CAPEX was $541 billion and for 2016 the CAPEX will only be around $379 billion! Do you get the picture?
This dramatic drop in CAPEX spending for E&P during the past few years should serve as a road map for the severe future hazards that will confront energy use worldwide within a few years. The demand will continue to grow and the lack of finding and developing new sources will shock energy users with dramatic price swings.
This does not even take in account disruptions in OPEC and non-OPEC nations because of military adventure,terrorism and natural disaster.
We invite all S A Advisory investors to carefully examine the MIDWAY DEVELOPMENT PROJECT being offered for participation. The price point for entry are the most attractive we have seen in many years.
This 4 well project reduces risk and also could create a windfall based upon production/well, price of commodity, dramatic reduction of cost/well and superior tax advantage.
These 4 wells are proposed for optimally producing the "Midway Sand". Upon review of the most recent drilling map of the area it is very easy to conclude that these 4 wells are in the "sweet spot"! The surrounding acreage of the Midway Trend indicates many successful, large and producing wells to date (see page 17 of doc).
UPON REVIEW of the Medium Production and Medium Reserve~the overall return is excellent!
The initial investment #'s are based upon $30 Oil and $2.25 Gas-Currently Oil is $50.00 and Gas is $2.80. Taking the current pricing into account the conservative return is 8/1! The anticipated payout is 12 months or less! This is based upon 240 barrels/day and 5000 mcf of gas/day . There are more aggressive scenarios , but we chose to be more conservative. It is in our opinion, Oil during the balance of 2016 will remain in a trading range of $45 to $57 ( unless some new disruption- then all bets are off- Venezuela is the time bomb- tick tock tick tock), we estimate that $50-$60 for 2017 and $55-$68 for 2018. We believe that gas firms up as well and by 2018 we could easily see $4+. Anyway you slice, dice or mince we have seen fossil fuel lows for the decade.
It is very important for all investor's too realize that natural occurrence could dramatically enhance commodity pricing, the return of economic growth and continual and expanding unrest in oil producing countries either OPEC or non-OPEC.
Energy Equities,a Texas company, has 23 years in the Oil and Gas Industry and it is our opinion this latest project offered~ MIDWAY DEVELOPMENT is a gem that should not be overlooked.
We intend to participate in the 4 well drilling program & S A Advisory invites all to call and review the documentation surrounding this project. The amount of ownership is limited so please call either Chauncey,Managing Partner @ 1-800-746-4427 or Sarah 1-800-811-2694(docs)
STR HOLDING, INC symbol STRI
current share price .27
52 week range .17-$1.28
website: www.strsolar.com ( not very active)
contact: phone 860 272 4235
shares outstanding - 18.4 million
insiders control 64% and institutions hold 13%
ASSETS 4-SALE $8 MILLION DOLLAR PLANT LOCATED IN MALAYSIA
TOTAL STOCKHOLDERS EQUITY I S OVER $40 MILLION OR $2.18/SH
Latest Q rev of $6.4 million loss of .16sh
STR- Holding commenced business in 1944 as a plastic and industrial material research and development company. Based upon their expertise in polymer science STRI evolved into a global provider of encapsulants to the solar industry. Encapsulants are a critical component used to protect and hold solar modules together.
INTERESTING VERBIAGE FROM RECENT 10Q~ See page 24,"we remain open to exploring possible business opportunities in potentially more profitable parts of the solar supply chain as well as other strategic alternatives".
ANOTHER INTERESTING QUOTE WITHIN THE 10Q: Part of the $6.6 in cash on balance sheet prior to the $8.4 million received from the IRS because of any NOL was broken down by where it is being held. The document mentions that the $2.5 million held in Spain can be used as a dividend if brought back into the US. Management states, " We don't permanently re-invest our Spain earnings".
WE HAVE 5 DIRECTIONS THAT STRI CAN TAKE AND SHAREHOLDERS WIN ON ALL OF THEM!
1. Their business turns around and their losses turn into profits. The company has been in business since 1944-so it is easy to conclude that management has staying power. Management "old" & "new" have survived and also prospered during their past 72 year history!
This corporate toughness will eventually cause the share price to recover from this extremely depressed valuation.
2. As mentioned with the latest 10Q on page 24 that management is looking for other opportunities either within the Solar Industry or even outside the current business model. The company has $15 million in cash, a building worth $8 million and shareholder equity of over $40 million or $2.18/sh. This company is extremely asset rich and only selling for .27! We have a huge discount from stated book value. The current share price of .27 creates an opportunity of almost zero risk and "skies the limit" if they turn the company around, sell the company or liquidate . We believe it is a win win situation.
The current share price indicates an extremely oversold condition and sooner than later will correct itself.
Just based upon the cash horde in the bank the stock should be trading at least at net cash of .82!
3. If the company decided to liquidate we believe that shareholders would get at least $2.00/sh. As mentioned the equity in STRI is over $40,000,000.00 with only 18.4 million shares outstanding.
4. A merger between STRI and another solar company or any other entity would surely reward shareholders handsomely. Again, we are trading @ .27 and we have a stated book value of over $2.00. Other benefits include- fully reporting, expertise in the solar industry and extremely clean balance sheet overflowing in cash.
5. We prod along and turn the business around and also declare a healthy dividend ( In the past management has reward shareholder with a div).
Bottom-line: This stock is extremely cheap based upon Book value($2.18)and the stock is .27. The PSR is .11 -keep in mind that a value of 1 is considered cheap and undervalued. The market cap is $5 million while the rev run rate is $25 million annually. The management team is not even being rewarded for their expertise in the Solar Industry as a leader in Encapsulants.
We see NO downside risk and really only see upside potential from the various avenues that STRI may embark upon .
We rate STRI with a strong BUY recommendation @ current levels with a near term appreciation potential of 10x your investment dependent upon how the wheel spins and what number it lands upon. Regardless, STRI @ .27 will return profits for the value investors.
WE HAVE NOT BEEN PAID BY ANY OF THE LISTED INVESTMENTS WITHIN THIS EMAIL ALERT! WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION.
If we did not have guns to blame then what would we do when there was a violent crime?
There is little doubt in my mind that this sub-human was a monster and everyone was afraid to say or do something because of our PC Cancer that is ruining our country and for that matter much of the world. Orlando will be etched in our history for a very long time. Our prayers go out to all the family members that must deal with this most horrible grief possible!
The warning signs were everywhere and for a very long time and the puzzle was never fully put together until it was too late. Law enforcement, FBI, Employer, wife ( might be another nutcase- most likely will be charge as an accessory to murder), parents,Terrorist connections and violent behavior. Since you cannot blame it on any of the above then blame it on the gun
We need stricter gun laws! We hear this cry everyday, but Chicago.Ill has the most strict gun laws in the USA, and has most murders per year with guns. Chicago police take 1 illegal gun off the street every 74 minute. You have heard all of this before. From France to Belgium to California to Mumbai if the bad guy wants a gun or explosives he or she can get them!
It seem every time we have an event like this the "LAW" was aware, but did nothing and in most cases the person had mental issues that everyone ignored! Just blame it on the gun!
Never blame the 'soft" target that are easy prey for these evil and disturbed humans. Of course never blame Islam for some of its sick and distorted ideology. Of course not - just blame the gun and not just the gun but now the AR15!
Food for thought:
These figures are from 2013- most current numbers available from the Government .
Motor Vehicle traffic deaths/yr 33,800
All poisoning death (drugs included) 48,500
All firearm deaths 33,600-11,200 of that number are homicides.
Heart disease 611,000/yr
A decade long study-84 mass shooting, found that pistols were used 60% of the time. Rifle was used 27% of the time, but the so-called AR15 was only used a fraction of the time.
FACT: State weapon ban (AR15) "did not significantly affect murder rates" in study covering 1980-2009.
FACT: From 2005-2016 (including Orlando) 153 Americans were killed in terrorist attacks. Not sure that this includes the Fort Hood shooting. Obama called it work place violence( i believe 16 dead and 35 wounded)
As mentioned some 11,000 shot dead from gun violence/year and 50% of those are black. The sad thing about this stat is that Black men only make up less than 6% of the population.
During 2015 on average a toddler in America shoots someone about once a week.
The Government want you and i to surrender our weapons, but Obama has record number of agencies that have massive arsenals .
Food for thought while you lock and load!:
The number of non-defense Department Federal Officers authorized to make arrests and carry firearms (200,000) now exceed the number of Marines (182,000) . In its escalating arms and ammo stockpiling, this federal arms race is unlike anything in history. Over the last 20 years, the number of these federal officers with arrest-and-firearm authority has nearly tripled to over 200,000 today, from 74,500 in 1996.
During the past 9 years through 2014, we found 67 agencies unaffiliated with the Department of Defense spent $1.48 billion on guns and ammo!
WHO ARE THEY PREPARING BATTLE AGAINST?
THE IRS, which has 2,316 special agents spent nearly $11 million on guns and ammo and military-style equipment. That is nearly $5000.00 in gear for each agent!
The Animal and Plant Health Inspection Service spent $4.77 million purchasing shotguns, 308 caliber rifles,night-vision, goggles, propane cannons, liquid explosives, pyro supplies, buckshot, LP gas cannons, drones, remote-control helicopters, thermal cameras, military waterproof thermal infrared scopes and more!!!!!
In reality the Federal Government has become a gun show that never adjourns. The current Federal Government want you and i helpless and even more dependent upon their umbrella.
As Charlton Heston said, "I'LL GIVE YOU MY GUN WHEN YOU PRY IT FROM MY COLD DEAD HANDS!'
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