capital raising

Why do I smell a cap raising? Because if Marion continues to spend at its March quarter capex it will be out of cash by end June. Experience with Marion suggests to me that a cap raising is on the cards. Maybe 30,000,000 shares at $1.00. That should tide it over for six months. Lead brokers Argonaut, Intersuisse and Pattersons? No, probably only Argonaut.

Amazes me how people continue to put such faith in the company's reserves estimates when just about everything they have said since December 2004 has proved to be b/s or misleading at best.

If you don't believe me go back and have a look at what they said in December 2004 about the East Texas property at Jefferson McLeod that they paid $14,000,000 for. Nothing they said then has come to pass. What makes anyone think that what they say now is any more reliable?

What keeps Marion moving higher is people's willingness to believe the Company's own reserves estimates rather than look at cash flow from production and sales and the amount of money the company has spent thus far, with really very little to show for it.

Could Marion go higher? Guess so. Dot coms did. All comes down to greed and ramping. Maybe the next investor presentation will send it to the magical $2.00 that Pattersons are supposed to have talked about (anyone seen that?)

If you are on MArion enjoy the ride but watch it like a hawk and be prepared to sell into a stop loss on the first sign of weakness. This is a classic pump and dump situation in my view.