Ann: Austin Secures Cornerstone Investor, page-50

JW - The way I feel about them right now 10.5 might well see me out too. One thing that would see me sell at whatever the bid offer is if an announcement wrt to debt comes out where Lanstead is in any way a related party (Meridian Capital anyone. CSMFs).


Max - this is general advice not financial advice.

1. TRUST NO ONE unless you know them and you have built mutual trust (and even then that can fall apart).

2. NEVER EVER accept the headline story. It is always intended to focus your attention on that and divert your attention away from considering alternatives and from questioning the details (usually where the devil lurks) and what has to happen for the headline to be achieved. ALSO ALWAYS READ THE ENTIRE PR.

3. ALWAYS ask yourself - what's in it for the other party and did I get a good deal. Way back I posted on AKK that I thought HK got by far the better of the Farmin (even before I got wind of the fine print of the APO on the carried wells) and stayed out of the stock, entering only on Stifflemire result.

4. LOOK AROUND - who else has done this type of deal. How did it work out. How does your property compare to your neighbour. Is your partner solid. How does your investment perform in a stress test (and the obvious one is against the price of oil - since we produce a commodity where we are price takers and not price makers)

5. FINANCIALS matter. The objective for the company is to make a profit. What does it take for that to happen and is that achievable and sustainable.


I've been "down" on AKK recently because IMO when I run the ruler over them using the above the answers have not improved much (or are negative) to when I entered the stock.

Having been burned more than once is why my bullshit meter runs close to zero.