ENRJ

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davidc257
Posts: 78
Joined: Mon Apr 26, 2010 2:42 pm

ENRJ

Post by davidc257 »

Why did ENRJ go up over 90% on substantial volume on a day when O&G stocks generally got hammered?

davidc257
dan_s
Posts: 37289
Joined: Fri Apr 23, 2010 8:22 am

Re: ENRJ

Post by dan_s »

Micro-caps like ENRJ are very thinly traded. As a result, a small order "at the market" can cause a big percentage move.

This is a good time to remind all of you to use "limit orders" when buying small, thinly traded companies.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37289
Joined: Fri Apr 23, 2010 8:22 am

Re: ENRJ

Post by dan_s »

Keep this in mind.

On November 4, 2015 the Company suspended the monthly dividend for the month of November 2015 on its 10.00% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) in order to preserve its cash resources. Payment of future dividends on the Series A Preferred Stock will be determined by the Company’s Board of Directors.

Under the terms of the Series A Preferred Stock, the dividend for the month of November 2015, and any future unpaid dividends, will accumulate. If the Company does not pay dividends on its Series A Preferred Stock for six monthly periods (whether consecutive or non-consecutive), the dividend rate will increase to 12.0% per annum and the holders of the Series A Preferred Stock will have the right, at the next meeting of stockholders, to elect two directors to serve on the Company’s Board of Directors along with other members of the Board, until all accumulated accrued and unpaid dividends are paid in full.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 37289
Joined: Fri Apr 23, 2010 8:22 am

Re: ENRJ

Post by dan_s »

ENRJ is fully drawn on their credit facility and they've sold about all of the assets they can sell. As of 9/30/2015 the company had enough cash on hand to survive a few more quarters, assuming they cut expenses to the bone. If the bank is willing to "let it ride" until oil prices rebound, the company may survive. As of today, I do not see much hope for common stockholders.

I really like Robert Watson Jr. and I hope a White Knight shows up to save the company for him. What's sad about this story is that two years ago they appeared to have a clear path to over 1,000 boepd of production and more upside in the Niobrara.
Dan Steffens
Energy Prospectus Group
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