As we've mentioned many times over the past several weeks, we have been aggressive buyers of ROYL on every dip, and with the company putting out an operational update minutes ago we couldn't be more excited about the prospects of the company, and feel very strongly that the stock is setting up for a parabolic move to the upside here a la PDO as in addition to extremely bullish findings of natural gas in their Uintah Basin acreage, they have also discovered what might possibly be a huge pool of oil.
Here are some excerpts specifically regarding the addition of oil to Royale's growing asset base:
"In addition, the Company believes the shallow Castlegate formation that is part of the Mesa Verde group of sands is shown on the logs to be present in two of the Company’s wells and covers a large area. This formation has shown both natural gas in the most updip location, as well as tar in the structurally lower position. If productive, this zone could result in production of both natural gas and oil from an area of almost three miles of structural dip."
"In California’s San Joaquin Basin, Kern County, Royale intends to drill an additional penetration of the Monterey oil shale. After analyzing the results of its last completion (Weber 27x-27) the Company will follow completion procedures that were developed in its latest test that resulted in the Monterey formation free flowing to the surface without pumping. Royale believes this to be extremely significant considering all of the Company’s previous perforations of the Monterey shale never achieved this. In addition, the oil cut has increased substantially over previous tests."
We did not expect these new oil finds and view this as an extremely bullish finding as we expect them to use a parallel strategy to their natural gas production of selling the Oil on a completely unhedged basis. In addition, the CEO stated that Royale has returned back to profitability this quarter and are looking for continued profitability for the foreseeable future, which is also excellent news. We are upping our initial target from the $15-20 range to $20-25 based on our belief that Royale's current $80M market cap does not accurately reflect the company's growing asset base and 100% unhedged natural gas production. As such we continue to hold ROYL as our top pick in the energy space.
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39 comments:
SWEET.
Where did you hear this?
Mogz, the news is under the Headlines section on Yahoo Finance.
I read the ews 3 times but can't find the oil news.
In one place it says :
"If productive, this zone could result in production of both natural gas and oil from an area of almost three miles of structural dip."
Why do you write 'they strike oil' ? Is not it still to be seen ?
Thanks for your analysis and for making me $$$.
And what's the deal with QMNM? If they're fully operational, does that mean that their book value should rise to .5 or 1?
Thanks.
Dead on ND
Still bullish on SATC? It pulled back a little more than I expected. I am in at $3.21
It interesting how some of yens wrote this off with comments of the calibre of "no earnings"..."overpriced" and when it moves you become the trader of allegiance...I guess it is better to be lucky than smart.
QMNM I noticed today, but I don't play .pk or .ob, just way too risky and 100% controlled by MMs.
Yes I am still bullish on SATC and QTWW as well, both will play out over time...because so many people/trading rooms follow the blog now, there is a bit more volatility in the names than we'd like. Some are simply scalping the quick pops, some are probably even shorting the quick surges which is ok. All our picks are backed by solid fundamentals and will play out over time, they are not quick pump and dump trades.
With regard to the increased volatility we are actually thinking of privatizing the site to 50-100 traders. We have not made a decision on this yet, but it is something we are thinking about.
count me in if you do decide to privatize this blog!
aymon
Nos,
I found my way here after a post on Yahoo board saying you blogged ROYL. Had never heard of you before that post, but after looking around your site, I have found that the predictions you guys make is astounding and wished I'd of heard of you sooner. I would hate to loose access to your blog if you go private, but understand that business is business. Thanks for making your site available and for your recommendations. You guys have undoubtedly come closest to mastering the art of trading stocks as I have ever seen. Best of luck to you and thank you so much for helping my portfolio show more green numbers instead of red.
While I value your advice, I also understand your thoughts about privitizing the site. I hope to be in the 50-100 that make the cut.
If not, best of luck to you. I was buying ROYL anyway, but I upped my shares and felt a little more at ease with my decision.
I am basically a long trader. I occasionally take some off the table, but that is prudent at times.
Thanks
NOS we taking any profit here or still holding 100%?
Here's one vote for keeping the site public. More PR for your upcoming book.
I didn't realize that you don't trade ob's or pinks. Some of my best recent gains have been with the OTCs, the market being what it is at present..
yeah, please keep the site public. i'm a lurker, mostly, and don't trade much, but i love reading the commentary here.
We are still holding, but feel free to take profits whenever you'd like here. These are very nice gains. We simply believe the stock remains undervalued even at these levels, and think it is still headed higher.
fyi: there seems to be a lot of chatter around FPP, too.
hey nos, "parabolic".. i love parabolic.. good call man. i've been following you since like february or march and you are almost always dead on with your calls. thanks man.. i owe a few thousand to you.
Sir:
I have been following your blog since April and I find the research and insights that go into it invaluable. A small private list of 50-100 investors is a great idea and I would very much like to be in that list if you decide to go ahead with it.
You can always post some of your research with some delay for promotional purposes.
Kind regards.
Bill and others,
Dont worry, should we privatize the site we will be giving high priority to our subscribers whove been with us since early on.
The idea behind the privatization is that we'd really like our subscribers to achieve maximal profits. With a smaller group we can enter stocks a bit more orderly without the huge volume + price surges we are now seeing due to the significant number of eyes watching our blog.
Thanks for the publishing NOS. You are the only one so far has good predicit. Thnx alot. i hve been following your blog since May. Let us know what is ur decision is on your privatization.
i'm all for privatization. we'll definitely cover the costs of membership on the early entries with your awesome dd and alerts.
aymon
I really enjoy learning from what you have to say and if you take it private i'd like to contiue to be able to read your ideas. thanks
Ridley
Wow NOS what happenend at the close? Was the selloff on high volume?
Hi NOS,
You give nice insight into the stocks and I did take your advice on ROYL and bought some.
I tried subscribing to your blog but couldn't, Is it disabled?
thanks
Uma
Uma,
It should be working, just click on "Subscribe" under my profile in the top right corner of the blog. You can subscribe via feed or email. Just as a note, Feeburners email service is kind of spotty so I recommend using one of the feed readers.
Hey NOS...just wanted to say a heartfelt thank you for your time and DD on your picks...you've helped me tremendously get out of the hole I was in...
Count me in should you decide to go private...and I fully understand the reasons why you would want to...I've been watching your blog since March...and a subcriber since begining early June, I believe...
Once again, thank you for your insights, DD and time you put in to pick your winners.
Regards,
-Kent
the reason ROYL went up because of hot oil& nat gas trends right now, Any fool can pick up this stock and
claim "i told ya".
ND,
WEL,SATC,QTWW ect.. these stocks that you recommended on your blog didn't budge at all...
What happened, still bullish?
I'd like to supscribed also to the side. i'm following your blog with sharp eyes and i would highly appreciate it to be a member of your blog also
thanks in advance
ND,
I watch trading on LVL2 today. It appeared the MMs have taken over. They appeared to be controlling the highs and lows - buying and selling cents apart.
I think they also burn shorts today. Are you seeing the same thing?
Nos, I am a relatively new user to your site and would like to included if this site goes the subscription route. I am a relatively new to trading and your help is excellent.
Thanks, Rob
I've been a lurker for the last several weeks. Got introduced to your site through superman blogs. Sites like yours and superman are far and few in between. You guys actually back up your pick with actual research. I really enjoy reading them. Finally took a dive today and got onboard with satc and royl.
i've been following your blog for a few months now but never posted. Had a link to your blog in my favorites.
So if you decide to go private count me in aswell.
Thanks
Bart
I stumbled upon your blog by accident, I was researching ROYL and wanted some more concrete information and after a bit of google magic, poof, nostradamus... i was skeptical at first i admit, but now im a true believer :)
NOS should we be worried here?
I want to thank you up front for all the research and advice that you give us. I am hoping that you will stay public but understand if we have to start paying a small fee to view this site. Again, thank you.
Steve
Please keep the site public. Even if you close the site to the chosen 50-100, they will post your comments anyway...unless you tell them specifically not too.
As you can see many of us are grateful to you for sharing your thoughts. Your insights and recommendations are amazing!
Some may become irritated when some (very few, I should say) plays do not play out the suggested way soon enough. But there will always be people like that. Don't rest of us pay for few impatient investors.
If you do decide to go "private," thanks for all you have done and good luck to ya.
Tough times for ROYL.. almost back to pre-Utah PR levels now.
No kidding, this is so odd with nat gas up too.
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