1. Agreed that NVR's presentation was flaccid. But I've often wondered about the CLRS strategy and everyone's obsession with getting it down a hole. NVR himself admitted it was a tough and laborious way to go about things. What about if a JV was signed with a major on the CLRS? They pay us $2 to 3 million a year for a 50/50 split on the global revenues going forward. I'm sure I remember from the distant past that Haliburton were very interested in a model like this? I believe it would be easier to get the jv now as we've done the hard miles on r and d and most will see we're practically there. Imagination and pragmatism is what's required now.
2. The cap raising at 22 cents is a clear signal that Cygnet Capital is truly behind this. The money is obviously being used to prepare the first rig (which is expensive), but once it proves itself on the first hole AND IT WILL PROVE ITSELF, because it's merely a beefed up version of what has made Warren Strange a success already, then there will be no more dilution as all the rigs will be financed. Cygnet are joined at the hip with CKK at the moment. They know what's going on for sure.
3. Share dilution is negligible with this number of shares on issue and the earnings potential of both technologies is phenomenal. Even one will do!
4. Whilst commercial success has taken longer than everybody might like, the fact is that on the board we have a guy who can do contracts (NVR's a lawyer?) and a guy who knows rigs. The latter has made a lot of money from this industry. What I believe is missing now is a good entrepreneur/negotiator in the team. Get the right person in now and watch this stock go to a dollar plus! Let's look at the glass half full folks. ;o)
CKK Price at posting:
17.0¢ Sentiment: LT Buy Disclosure: Held
