ENERJEX preferreds, Dan

[bigtex]

Dan, these are getting very cheap on not very large volume i can't imagine someone would invest 3+ million just recently if they are going BK

[dan_s]

There is little chance of EnerJex going bankrupt. Robert is a sharp CEO and he knows that now is the time to hunker down.

[jsb1949]

Hey Dan. Any ideas on this one? Common rather stable but the pfd's
are setting new lows every day. Seems somewhat odd.

TIA

[dan_s]

They call it "preferred" for a reason, so the recent selloff makes very little sense. I need to see 4th quarter actuals before I can update my forecast model.

[bigtex]

i asked the company when the 4th quarter will be out...did not get much of an answer

[bigtex]

looks like they are not going out of business

http://finance.yahoo.com/news/enerjex-r ... 00411.html

[dan_s]

The pfd stock should make a big comeback today. I am working on the forecast model now and will have more comments on EnerJex later today.

[dan_s]

Liquidity and Capital Resources (Cut form SEC filing)

Liquidity is a measure of a company's ability to meet potential cash requirements. We have historically met our capital requirements through debt financing, revenues from operations and the issuance of equity securities. We believe that our historical means of meeting our capital requirements will provide us with adequate liquidity to fund our operations.

The following table summarizes total current assets, total current liabilities and working capital at year ended December 31, 2014 compared to the year ended December 31, 2013.

Year Ended Year Ended
December 31, 2014 December 31, 2013 Difference
Current Assets $ 7,411,168 $ 5,401,304 $ 2,009,864
Current Liabilities $ 4,139,356 $ 6,506,178 $ (2,366,822 )
Working Capital (deficit) $ 3,271,812 $ (1,104,874 ) $ 4,376,686

[dan_s]

My forecast model for EnerJex has been posted to the website. My SWAG is that their oil hedges will insure survival through 2015. Cash flow from operations should be approximately $1.5 million (net of interest expense). That should be enough to keep paying the monthly dividends on their pfd stock, but nothing left over to grow the company.

IMO it takes production north of 2,000 boepd to justify the cost of being public. I liked ENRJ when it had a clear path to production growth, but that is gone until oil prices improve.

[bigtex]

Dan


what about the 3.1 million placement?? where will that be used???

[dan_s]

$3 million does not go too far in the oil patch. EnerJex is doing the right thing to "hunker down" and survive the dip in oil prices. Read what they say about "Strategic Alternatives".