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This is a highly speculative stock. Essentially what you are getting here is a fairly well run utility with the option of a 100 bagger if their shale technology pans out. There are four major projects here, the colorado shale, the israel shale, the mongolian shale, and the golan oil project. It seems the colorado project is not feasible at the moment due to the acquifer and environmental concerns/regulation which led Shell to abandon its own project there and focus on the shale in Jordan. The Israel project has tremendous potential but is being held up by various greenpeace nuts. However that being said this project has a lot going for it. 1) The person in charge is Harold Vinegar and his deputy Nguyen some of the most respected scientists in the oil industry. 2) They have Relik Sheffir a former air force general running the business end (in Israel connections are incredibly important and he has them in spades. 3) the rest of the Israeli people are also well connected. 4) Dick Cheney, Steinhardt, and Rothschild are involved ie more connections. As far as Mongolia is concerned I don't believe they will be held up by environmental regulations and they are probably working on this in parallel so that if they get the Mongolian project working first it will be proof for the Israeli and Colorado projects. Assume for instance that they can produce 50000 barrels a day from the Israel project. Approximately 30% will be profit ie at 100 a barrel, 40 is for costs and then 30 goes to Israel and 30 goes to Genie. That means .5 billion profit per year and with a PE of 20 we have 10 billion company right there. Additionally there is another project in the golan which while diplomatically problematic I think Israel can withstand the pressure since Syria has fallen apart that project as well could also bring in significant revenue. There too the project is run by a former israeli general effie eitham who was also minister of energy once upon a time so more connections. Again this is incredibly speculative but given the people involved and understanding Israeli society as well as I do I think this has a better chance of succeeding and failing. So if you are looking for a 100 bagger this is as good a shot as any.
Paying a return of capital before becoming profitable is questionable.to me. Is this company a wildcatter? This could be gamble but might win big since they are in areas where energy is needed.
Do not know!
This company will really conquer the S&P 500 performance. This weeks for sure.
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