Hey Sean -
While you are getting set up, make sure that you have level II capability with your software. You will need it for these types of stocks. It is good to have anyway for any stock.
If it doesn't come with the software that your brokerage firm gives you, then you can get it for $29 a month at investorshub.com.
If you have any questions, please feel free to ask.
You will need it.
Bill
Hit 2 Billion in volume......
Bill, what are your thoughts on MGLG after today. The rally stalled.
I actually thought the statement they put out was filled with positives. I'm surprised the SP didn't go up from that alone.
I still really like this stock. The #'s will be out soon.
Hey X -Originally Posted by xitvp
There was a bunch of profit taking from flippers and that letter caused the damage.
I thought the letter had a lot of positives also, but people were looking for a PR with numbers.
They haven't put the numbers out yet and according to IR (Karen) at Megallan, news will be out very soon per the IHUB forum.
Trading stalled because most people were not willing to sell even though the price was going down and are holding. A stock can fall by its own weight when there is little volume.
Now, later this week, maybe even tomorrow, people are going to start buying again, according to my guesstimation.
The stock was growing too fast and gapping up, so it had to give.
I plan on just riding it up and if it gaps up to an acceptable level, then I will sell off and catch it again after it falls.
If the stock goes up naturally, then I will ride it out, but those quick gap-ups are not supportive enough to hold the stock price for long.
I am glad that you asked me that question, because now I know what I am going to do. I really didn't have a proper exit strategy until now.
Tomorrow is another day and hopefully the PR comes out really quickly.
Last edited by billhart22; 06-15-2009 at 05:57 PM.
Bill,
I have been thinking about this as well. I suspected that a gap up this morning would induce some heavy profit taking. If you think about the people who got in between .0001 - .0003 with 1k in they were look at between 10 - 25 thousand in profit. yes that;s 1000 to 2500% profit.
But, come on . . . I thought there would be a lot more people holding even with huge initial profits. Additionally there were a ton of flippers. This can really slow down the bull. I believe that is why we are having so much volume. We have attracted too many stock buzzards.
BEHL had me thinking about that. They have had a very quiet rise in pps. 40M in Volume compared to MGLGs 1.8B. This just shows that you have a lot of flippers and manipulators in MGLG. Not to mention that when you have a huge profit taking dip many times the hanger oners (those that only jumped on the stock because of the rumors) will panic and dump causing a cascade.
A letter stating that they will be generating revenue didn't even turn this around. I think we will just have to wait out the storm. In the end I still think this will be a solid stock. We are dealing with human emotion/psychology right now. The only problem was that it worked against us instead of for us this time.
What say you Bill, Ray?
TORONTO -- 06/15/09 -- Magellan Energy Ltd. (PINKSHEETS: MGLG) has issued this Letter to Shareholders in order to address these questions and to review the success of the Company's expansion efforts through the second quarter of 2009.
From: Apolinar Carcasona, CEO, Magellan Energy Ltd.
To Our Shareholders:
In response to a number of questions posed by shareholders in recent weeks, I would like to take this opportunity to unequivocally state Magellan's position on a number of issues.
(That first paragraph should be self explanatory)
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Our Martin and Anderson leases are once again producing gas and have brought Magellan to "revenue producing status."
(They are now producing revenue, but not saying that they are making a bunch yet or have been paid yet)
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All of our wells have now been connected to the compressor and gas is flowing.
(All of MGLG's wells are connected and the gas is flowing)
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Lines from other producers in the area are slowly being introduced and as soon as volumes have stabilized, Citizens Gas will be providing us with average volume numbers.
(Other companies are being hooked up and as soon as the volumes have stabilized, then they will have some average volume numbers)
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As soon as these numbers are received, we will update shareholders.
(Self explanatory)
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Also, to clear up further confusion and to lessen inquires internally and externally, while Magellan is not an operator itself on these properties, it is a member in good standing of TOGA (Tennessee Oil and Gas Association). Our business partner, TMD Energy, is the operator on our projects.
(Magellan is a member of TOGA even though TMD Energy is the operator, Magellan is not)
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Magellan's business plan has always been to seek out, procure and refurbish past-producing, low volume wells that once again are economically viable due to the high price of oil.
(Magellan seeks out old wells that had too high of a cost to keep producing, but with the higher cost of oil they are now good enough to put money into again)
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Developing shallow gas and/or oil projects in Tennessee that possess the low risk, blanket characteristics of the area, make it possible to drill and produce a well nearly every time.
(The fields are so proven that they are not wild-catting. They know the gas and oil is there and they rarely miss....this is a big plus)
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The continued acquisition of low-volume producing wells such as these will add to the cumulative oil and gas production numbers that will ultimately create higher revenue numbers for the Company.
(The more wells, the more production and the more cummulation of revenues
Well A + Well B + Well C + Well D = more and more revenue)
--------------------------------------------------------------------------
There have been many inquiries about why Magellan increased its outstanding shares over the past year. For approximately seven months, up until the end of May of this year, gas production on the Morgan County wells had been virtually at a standstill because of the high BTU/shut-in situation.
(They couldn't produce because of a high BTU issue so they were at a standstill)
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As a result, revenues were at a standstill, but expenses were not. Unfortunately, our share price also suffered considerably due to this forced inactivity and overall poor economic conditions. Our day-to-day operations and acquisition strategies still required funding; therefore, our outstanding share count rose as we obtained the additional funding necessary to execute our business strategy.
(They weren't making money because of the standstill, so they had to create more shares of stock so they could pay their bills during the BTU issue and the crappy economy)
--------------------------------------------------------------------------
Due to the increasing price of oil worldwide, Magellan is focusing on projects that contain both oil and gas as they will provide more upside to the Company while maintaining the low risk it is pledged to in the area.
(Since oil and gas are going up in price and they are in areas that they rarely miss on a drilling, it gives them an advantage to areas where they could miss)
--------------------------------------------------------------------------
The Company is currently performing due diligence on a lease located on the Chattanooga Shale, near our existing oil and gas producing acreage in Eastern Tennessee.
(They are looking at an additional lease to see if it will pay)
--------------------------------------------------------------------------
Many shareholders have been concerned about the "caveat emptor" tag for "questionable promotion" that has appeared on a popular website that supplies information on Pink Sheet listed companies. Magellan wants to make it absolutely clear that the Company did not engage in these activities. The Company was in a position where there had been no news for six months due to the high BTU/shut-in situation in Morgan County. When Magellan was able to release news that the situation had been resolved, it resulted in renewed interest in the Company and tremendous volumes and high percentage gains in the stock price were realized. There are many stock awareness newsletters that indulge in the practice of "tagging" or including mention of public companies that have realized these high volumes/percentage gains to stimulate the reading of their products. Such was the case with Magellan. When this was brought to the attention of the above-mentioned website, they chose to ignore these facts and demanded that the Company pay an exorbitant fee to have the "caveat emptor" removed. Magellan did not feel this was appropriate and refused to pay.
(They were getting a shake down by "You should know who")
------------------------------------------------------------------------
Magellan is in the process of updating its website to reflect these recent activities and to provide as much information to its shareholders as possible. In short, the Company is very pleased with its successes to date and is extremely optimistic about its prospects going forward. Magellan has grown from a fledgling company to an oil and gas producing company that will emerge as strong and profitable. We are making every effort to build upon the momentum of this second quarter and continue to aggressively implement our growth strategy through the rest of 2009 and beyond.
Apolinar V. Carcasona
President, CEO
About Magellan Energy: Magellan Energy is a publicly traded independent oil and gas company (PINKSHEETS: MGLG). The company is actively acquiring oil and gas leases, producing properties, mineral rights, and surface interests in Tennessee and Oklahoma. Once acquired, the company intends to develop each property to maximize the income from each property by re-establishing production, refurbishing and improving the existing production and operations.
Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.
Contact:
MAGELLAN ENERGY LTD.
Member of the Tennessee Oil and Gas Association
Website: http://www.magellan-energy.com
Phone: 1-866-365-4724
Hey M -
I agree with you 100%! I am in it for the long. It may get goofy for a while, but I am not leaving it!
I just broke down that letter.....people didn't really read it. They were pissed because there wasn't any production numbers in it, so they threw a tizzy.
It could just start going back up tomorrow too...penny stocks don't need much reason to go up or down. Actually, with all the sellers out of here it can grow more normally.
We shall see
Last edited by billhart22; 06-15-2009 at 07:58 PM.
I thought the letter was really informative. Here is the complete story from that letter broken down:
To Our Shareholders:
In response to a number of questions posed by shareholders in recent weeks, I would like to take this opportunity to unequivocally state Magellan's position on a number of issues.
That first paragraph should be self explanatory
They are now producing revenue, but not saying that they are making a bunch yet or have been paid yet
All of MGLG's wells are connected and the gas is flowing
Other companies are being hooked up and as soon as the volumes have stabilized, then they will have some average volume numbers
As soon as these numbers are received, we will update shareholders.
Self explanatory
Magellan is a member of TOGA even though TMD Energy is the operator, Magellan is not
Magellan seeks out old wells that had too high of a cost to keep producing, but with the higher cost of oil they are now good enough to put money into again
The fields are so proven that they are not wild-catting. They know the gas and oil is there and they rarely miss....this is a big plus
The more wells, the more production and the more cummulation of revenues
Well A + Well B + Well C + Well D = more and more revenue
They couldn't produce because of a high BTU issue so their production was at standstill
They weren't making money because of the standstill, so they had to create more shares of stock so they could pay their bills during the BTU issue and the crappy economy
Since oil and gas are going up in price and they are in areas that they rarely miss on a drilling, it gives them an advantage to areas where they could miss
They are looking at an additional lease to see if it will pay
They were getting a shake down by "You should know who"
Bill,
thanks for the mglg info .. dont sell on the bottom it will roll up as expected.. buy the company, not the day..
stockmagician.whats your take on (behl) for tomarrow we had quite a nice roll today...I am long here but like what I saw today ...
Bcle is a very good long ,a good time to buy now ..imo
Thanks for the break down of the letter.
As I posted earlier, I was excited when I read the letter and thought there were a lot of statements made that secured my confidence in the stock.
I was really surprised when I saw the initial reaction to the letter. I agree Bill, I think when people saw it was not #'s, they sold assuming the worst.
I think what happened today is a good thing assuming people either added to their positions, or new investors got in at a great price.
I'm going to try and grab a little more in the AM before this gaps up again (which it will).
I liked how they exposed "that certain website" as opposed to avoiding the subject, or worse yet, actually paying them.
On a side note....SIRI is making me want to pull my hair out of my head. A VERY frustrating stock to own.....
i have not learned a damn thing about stocks or i don't have the cajones to be in this business as i am in spng at avg .04 and behl at i think .0028 and mglg at .004...
I am playing on the house money on spng though so no biggie.
I got some bcle too... XOMA also
i prefer to invest small amounts of money and watch them go up to 400% and then down to zero... hooray! ok, i don't like it i just want to turn $60 into $75,000.
thanks for mglg, its been fun, i am holding out for .50! lol, i can hope.
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