May Idea of the Month: Three Borrowed Energy Juniors


This month I’m taking an idea from one of the teasers that I’ve been kicking around for the last week — Chuck DeCastro has a teaser out for three very small oil and gas companies, and he often brings up appealing stocks, so I decided to look into them … and at least one of them seems like a relatively low-risk natural gas stock, which is appealing, but I think there’s also some worth in splitting an investment among the three — the other two are much smaller, and if you pick up a few shares of each there’s a chance, if Chuck is right, to average into some good returns.

But first, I have a couple other things I wanted to note for you this month …

I don’t know if you noticed, but the Rohan Marley coffee stock (Jammin’ Java, JAMN on the bulletin board) that I wrote about last month had a ridiculous day yesterday, at one point trading up by about 50%. (Not that I’m bitter, but I think this article probably, though I certainly can’t prove it, spurred the hacker attack on stockgumshoe.com — which is part of the reason I had to move it here to the Irregulars site. There’s a limit to the tech defenses that a little operation like ours can pay for, and our hosting costs have already gone up by about 3,000% as a result).

So just in case you’re curious: yes, I still think it’s crap. I may not be a 100% committed value investor, and I speculate on things myself from time to time, but not something like this. Promoters can drive the price up to incredible levels sometimes, but that doesn’t mean there’s a valuable business underneath it. I can see how it would be fun and sometimes profitable to trade in and out of a stock like this like Tim Sykes and others do, though it’s not something I try to do, but it’s now a $300 million company with less than a million dollars in assets, and they’ve just made their first sales this quarter in an extremely competitive and relatively low-margin business. For what it’s worth, Jammin’ this week felt the need to announce that they hadn’t been behind the big stock promotion campaign, though I expect they appreciate the dramatically higher prices their shares are getting, and they also seemed ...

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