3SOF

Hi David, what do u think of AMEP at its current level? interms of selling target and buying targets on dips.
it's a past pick and did end up a 10 baggered as u predicted. i think it surely deserves some attention from our captain!   
Lots of thanks for the hard work!

There's only one way to play a speculative bubble like AMEP.OB is enjoying. You jump on the moving train and always be very carefull to jump out again before it explodes or drops off a bridge.

When it's over, it's over. This means I wouldn't think of buying AMEP on a pullback, when it has a pullback, it will all be over and the stock will come down to its lows again.

I didn't have enough patience for the speculative bubble to unfold, but now that it is here, I want to remind everybody what it is and always have been: a bubble that will certainly explode. So be careful.

Thanks for the prompt response david! 
i thought AMEP wasnt an exact bubble as it just got the rig and looking to start producing ?
That sad , i unloaded half my postion today .
Thanks for everything !

oh dave, can u take a look at NVAS when u got the time pls? its struggling hard with the previous high at 0.295.
what do u say?
thanks!

My advise would be to play this one very carefully. It's behaving very erratically and as David said, it is extremely speculative. It requires constant monitoring throughout the day. Today AMEP.OB went as high as 48% but it then came crashing down and closed at -3%. I just checked the afterhours quote, and it has now shot back up 42% like a rocket.

Where's the eject button?

David,

Thank you for weighing in on AMEP.  Can you give 2 specific things about AMEP that lead you to believe it will go below .01?  Unknown dillution, dip in NG/oil prices, dishonest management, profits not structured to go to shareholders, big rig a fake, no oil/NG where they are scheduled to dig, naked shorting, etc.

The "bubble" ratioanale was basically a conceptual trade on AMEP that you were dead on about, but lacked a bit of timing, as I do most of the time.  Your theory for it going below .01 agiain seems conceptual as well.  The bubble would cause this crappy company to rise was your first concept, and the same bubble will cause the crappy company to fall worse than ever is your second concept.  

What if the crappy company has dynamics that change, such as the acquistion of a big rig that can begin drilling any day? Perhaps as many as 20 wells per year?   Doesn't that disturb the concept a bit?  

Is the company such a pile of dung that not even oil in 100 wells could make the shareholder money, or is it that you don't believe they will drill these wells and find any oil or NG of any consequence?

Is there anything beyond the "concept' that leads you to feel this is going "sub .01".

Thanks for your efforts.  if I can get out above .075 my trading year will be a success if I don't make another trade.  All because of 3sof.

oic

David,

I started dumping today at the opening and was able to liquidate my entire position at about .09, over the course of 45 minutes.   I pay for this site to have someone slap me when I am out of control.  Your post did that.  Perhaps you are wrong, but I took my profits and will await another great pick.  If it runs wild, no regrets.  I still love the potential, but the volatility spooked me for sure, as they intended. 

QuoteThank you for weighing in on AMEP.  Can you give 2 specific things about AMEP that lead you to believe it will go below .01?

Remember the internet bubble? How many small companies, like OTCBB companies are still alive and trading, doesn't matter how their fundamentals look on top?

Big oil companies will come down hard in the near future, but they'll survive. Most small companies that were created to enjoy the bubble will do just that and then they will change their names and their activity sector. AMEP.OB is a perfect example:

«Prior to that, the Company was f/k/a Communicate Now.com, Inc. and was incorporated on January 31, 2000 under the laws of the State of Delaware. On July 15, 2002, the Company changed its corporate name to American Energy Production, Inc.»

Just history repeating itself. I believe the oil price will come down below $30 or $20 dollars a barrel again (it always happened in history, and everytime it had a bull run people said: «this time is different»).

I would never touch AMEP.OB again. Just my humble opinion, good luck !

Thanks David,

Any chance you could look at this with the assumption oil stays between $50-$75 for the next 4-5 years, as well as NG staying high?  I know you don't think that is the case, but if you were to be wrong about that, how do you feel about the risk/reward with AMEP at say .05/.06, or for that matter .08 and why?

oic

Would somebody smite me, I am tierd of looking at 16.    

Thanks in advance.