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Trading SSN: Ready to go up again?

Discussion in 'Shares' started by wdongli, 17th Oct, 2011.

  1. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    SSN was one I could not forget so that I bought it back at $0.11, which was far higher than $0.01 when I first touched it.

    It has some attractive things:

    1. Trailing-4-Week Performance: (16.4%)
    2. P/E: 4.1
    3. It has a comparatively large exposure to the Niobrara oil play through its Hawk Springs project
    4. It also plays in the Bakken, where it recently acquired 20,000 acres with an option to buy 70,000 acres more, it is ready to capitalize on its expanded drilling program.
    5. After selling off its Greater Green River Basin properties in Wyoming to Chesapeake Energy, it paid off its debt and bolstered the cash it has sitting in the bank, making for a very nimble operator.
    6. Since it trades at less than five times earnings it offers a more attractive valuation than peers EOG Resources, at 52 times, or Brigham Exploration at 38 times.

    It is still a small oiler so that its price has dropped down from its peak since the market now take any small things as craps. The market can take it as craps but I do feel it is underpriced by the market.


    SSN seemed much clever than me in the market. It does know to reduce the debt after it run in the upward road long enough rather than as me to see the paper profit gone.

    It has the bond-type project which could produce stable income inflow, which allow it not needing to raising the capital in this time and then scare the coward traders run away in rocket speed.

    It can expand its production to drill as usually to allow its share holders having the chances to enjoy the stock-type capital gain with acceptable risks. If it gets more oil from the drilling, the traders would chase after it in rocket speed.

    Even it could not give dividend out to its shareholders but it does put its own at a least risk position in the exploration business when all of the world suddenly jump into the flight to the safety heaven. When the heaven become too crowd, which is inevitable, it would show its value.

    It is the time big is great and value is crap. No too many really understand what is quality and what meanings the price to the quality. No too many really understand what the winds would do to they qualities and craps.

    All I do can be wrong but I do hope I could hold value in the margin of safety and sell along the road when market drags itself from the darkest tunnel. The train of glossy qualities start its engines to leave away.

    The crowd who are still in the market would be impulsed to sell any assumed craps with the hope they could not stay in the empty station for the glossy qualities. It is not bad idea if you are still in the station and try to catch up the last glossy trains. However if you are left in the crap trains, don't jump down too easily since you could put yourself in a very embarrassed situation:

    1. The glossy train have left just when you put your toes on the station
    2. The crappy train just leave away too but you don't have time to jump onto it and you could be hesitated to jump onto.
    3. All of trains crappy or glossy leave away from the stations and then you find you are lonely in the stations.
    4. Mr. Market is very canny to play the paradox games with anyone who has faint gut and little vision.

    Bye bye, the people on the trains cheerfully shout to the stations, is another big bang on the heads of all of stupid and short-sight traders and investors. They like to pay high cost and tend to cry in the ruins. They love it and like to be so since the market just make their life very sensational in stampede and euphoria. Sensational life needs the money to make!

    I would be very behaved in future as a timid child to play the fire when all are cheerful and get big protection gloves and clothes to see how terrific consequences for the market adult to burn their money on fire. They are too clever to stop the losses but I hate any losses intuitively even not instinctively.

    Don't worry if your crappy trains are still in the station rather than in the hell.

    Mr Market would add some fuels for all of crappy trains to leave away even they could stop in the way! Don't forget you need to jump down when more and more people start ignoring crappy or glossy trains and would like to pay high tickets for any trains!

    Crowd doesn't care the price to jump up when they see anything, which could move forward, as trains! Why 10 baggers could be generated with the crappy trains? Half is because there are some great fuels in the engine and half the movement of the trains let them fearful to miss the trains!

    Buy the tickets for crappy trains when all of the glossy trains are increasing the ticket price!

    Sooner or later the crowd would take flight from the crowded safety heaven to the fool places in the market. All of us know heaven is much tinier than this fool world and the living expenses in heaven is too high for the fools.

    Are you in the heaven now? I am waiting for you to come back, Sir! You are not the Gods and Goddesses or even you are not the Angles. The fool world is the place you could cheer or cry!

    If you are not in the heaven but the insightful owners of the warrior service business not like me half of blood and brain are those of warriors and half academic type researcher about the possibility of the warrior service business, you should have some great cash reserves and cash inflow.

    Theoretically you should use some of your reserves to buy the cheap tickets and then sell to the warriors when they flight back. You should be cautious always and you should not forget if EU, US, and China tip off and Australia in hell, you could buy more to service the warriors when they inevitably are depressed and hopeless again!

    You should know all of the warriors can fight to die but you could not. The survival warriors need you more than those who are in the hell!
    Last edited by a moderator: 17th Oct, 2011