Miller Energy Resources (NYSE:MILL)

lovesstocks2 (22.24) Submitted: 4/20/2011 10:24:30 PM : Start Price: $6.02 MILL Score: -56.48

This company had the nerve to purchase a more than $500 million company in bankruptcy ( for 3 million dollars) at a time when oil prices were in the trash can. The company came with a man who has been working on these wells for more than 20 years and he has 3,000,000 options as incentive to make this work. Those options were worth nothing when they were granted. The accounting looks strange because of the bankruptcy purchase but it is correct. The company has started turning on this oil company that was completely shut down and Alaska has offered some tax incentives on certain of their payments and deferred some bond payments.
These guys have a lot of guts and have some experienced people on the team. Even with the options dilution, this could be a home run unless oil prices stay below $60. They already have production over 1,000 barrels a day while incurring only modest debt so far.
When they get to the point that they can borrow some money to turn the company on at a faster pace, this stock could soar. The bankrupt company had $500 million in debt that is now gone.