AENP.OB

[stockbean]

bought this stock today!!!!!!

thanks dave!!

[David Randolph]

AMEP.OB is an oil play in the micro-cap spectrum. I expect many of these stocks to go up five to ten fold in the coming speculative bubble in oil stocks. Holding on to this for the medium term, searching for more stocks of this group to grab.

[Gurukul]

I will suggest ARET.OB

[David Randolph]

With oil at $60 a barrel and above, it is natural for investors to pick these small and micro cap stocks in the oil & gas sector. AMEP.OB is just consolidating before another enormous white candle, I believe.

[slomo007]

First post (thanks for the site):

Can someone tell me about the 1Q results of AMEP?  Can't seem to find them.

[Michael]

Here is a summary:

http://biz.yahoo.com/e/050523/amep.ob10-q.html

I will follow this with interest. With my investing philosophy this is probably the worst pick I have ever seen!

The company is basically bankrupt. The revenue has dropped to ZERO. They are defaulting on their bank note. Their working capital is negative. They tried to raise funds through a stock offering but had to call it off. The shares they sold were priced at 0.0106 and today somebody is willing to pay 0.0197.

I have a lot of respect for the chart readers on this site, but really to invest just based on a chart is not my style – I might not be rich enough!

Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....

My oil pick is NLG.TO. Earning money, production is increasing very rapid. The chart is not interesting yet but it will be.....

[TRUNK]

Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....

I think your missing the point Michael, we all know the fundamentals suck or else it certainly wouldn't be @ 2 cents a share.. We are not hoping to profit on the fundamentals, but rather the hysteria of buying on a speculative oil bubble..

Greed run amok has been an essential feature of every boom in history, and David has so eloquently pointed to this stock as a chance to profit wildly off of the Madness of Crowds, People will eventually be digging through the trash looking for the Microcap Oil sector stocks, fundamentals or no fundamentals and AMEP.OB with its daily volume is surely where some of that money will end up..

Look at History and we can learn a lot from it, History certainly does repeat itself and if you look at some of the frenzy booms of the past such as the Dutch tulip bulb craze of Holland in the early 17th century or any of the other speculative bubbles of the past you should be willing to take a small wager in this bubble as well

"In Crowds it is stupidity and not mother-wit that is accumualted" Gustave Le Bon 1895

The story of Fantazia's father wanting to get in on oil stocks will be repeated over and over across dinner tables in America and again this is testament that David's analysis was dead on

David is not proposing that one stake a large investment in the stock, rather the opposite a very small wager that you can afford to lose.. The chances that it will become a 10 bagger are well worth the small wager, ofcourse you could lose it all, but personally I love the odds of going long.. The Risk / Reward is astonishing

[eliteG]

I applauded both Michael and Trunk.

because:

Michael:  good research into fundamentals and I will watch NLG, it looks interesting(chartwise)

Trunk:  I really enjoyed your post.  Bringing up the Dutch tulip bulb craze was great!  You hit it right on. 

I really dont see what we are doing as investing at all.  We are trading.  We are hitchhiking in the market.  From one stop to the next    We dont always get to the destination we want but we sometimes dont have a destination...just to be on the way.

[Michael]

Trunk, Great post!

As I said (or at least meant to say) I am here to learn. If it is really true that people will continue to throw money at a stock like AMEP with disregard of the fundamentals I might have to revise my strategy!

I love the tulip story (as I remember it there were examples of people buying half a tulip bulb!) but I hardly see the oil industry as a bubble. It rather seems to be one of the most attractive value plays around. NLG.TO is just one example of a small player with tremendous potential. As said NLG's chart is not on fire yet but I am sure there most be some of the oil stocks that have charts that are at least shimmering with healthy fundamentals!

We will see.....

[TRUNK]

A single Bulb in 1636-1637 before the Tulip Bulb crash would go for about 5,000 guilders, it is impossible to translate that into modern money, but it was about twice the yearly income of a wealthy merchant of the time just in 1 bulb... and yes people would spit the bulbs in half and sell halves of bulbs.. Everybody saw there neighbors getting rich off of Tulips and they had to get involved as well... the prices of tulip bulbs increased 20 fold just in one month (JAN 1637)

this is not much different than the dot-com bubble where everybody saw there friends getting rich and they had to get in as well.. To a lesser extent Mass hysteria took over and everybody and their brother threw their money at any dot.com that existed, whether the companies ever had a chance to reach profitibility or survive was never a question...

So here we are now.. Everybody is seeing their neighbors getting rich off of Oil and they want a part of the action too.. the next logical step is to beat the masses into the pot and exit long before them.. Fundamentals are irrelevant, understanding human psychology is key

[dhiraj19]

How can I trade NLG through ameritrade? Any idea it shows invalid symbol to me?
Thanks,
Dhiraj

[TRUNK]

NLG.TO looks very interesting to me, but I have the same problem as dhiraj19- ticker doesen't show up on Ameritrade.. what is a .TO issue mean anyways? never seen that before.. anyways if the average investor can't get a hold of NLG.TO then that lessons the reasons to own some of it..

[Ramsburg]

Here is a summary:

http://biz.yahoo.com/e/050523/amep.ob10-q.html

I will follow this with interest. With my investing philosophy this is probably the worst pick I have ever seen!

The company is basically bankrupt. The revenue has dropped to ZERO. They are defaulting on their bank note. Their working capital is negative. They tried to raise funds through a stock offering but had to call it off. The shares they sold were priced at 0.0106 and today somebody is willing to pay 0.0197.

I have a lot of respect for the chart readers on this site, but really to invest just based on a chart is not my style – I might not be rich enough!

Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....

My oil pick is NLG.TO. Earning money, production is increasing very rapid. The chart is not interesting yet but it will be.....

Michael,

I totally understand and respect your business philosophy, although it's very different from my own.

Probably it's not only about I being a technical or a fundamental trader, but also because of the investment time frame.

10 of my 10 best trades this year were all done in companies near bankruptcy, or companies with really scary fundamental data. They were all closed above 100% profit, some 10 bagger plus... They were all short term, 1-2 days, 2-3 weeks max... They were all based on Technical Analysis, after checking a little of their fundamentals speculative «potential»...

When I search for short term trading opportunities, I don't look for strong fundamentals, I believe that most of them are already discounted by the market activity... I don't see myself trading KO, MCD or MSFT, although I know they are really profitable companies, born to last for the next 100 or 200 years and to give their shareholders a lot of dividends (well... I don't know about MSFT hehehe).... Of course I'm exaggerating when I call these 3 examples.

The point is just one:
When I buy some shares, I'm not buying fundamentals, and I'm not buying a seat on the board, I'm just buying a price... a number...
My money depends on that number, so I try to buy numbers that have good potential of going up soon...
I know that the number doesn't depend directly on the fundamentals (on my short time frame), because I see the numbers oscillating a lot while the fundamentals are just the same...

This numbers moves according to supply/demand... supply/demand can be seen on the charts, so I focus my mind on the charts
Off course, I'm being a bit exaggerated, but just to show my point of view... I care about fundamentals, just to know see a bit more behind the numbers, but ultimately I'm just trading numbers, stories, potentials, dreams, ideas, mass behaviours... not companies

Best regards,

[fantazia]

Trunk and Dhiraj,  a symbol ending with .TO is traded on the TSE (Toronto Stock exchange)  here is the chart if you are interested. If your broker allows trading on the TSE you should see the symbol.  The tse is actually weighted very heavily in commodity issues.

http://finance.yahoo.com/q?s=nlg.to

Good luck

[saffeysite1]

Crude Vaults Past $60 a Barrel
Sunday June 26, 10:31 pm ET 
Crude Vaults to New High of Just Over $60 a Barrel in Asian-Hours Trading on Supply Concerns.

That's all the info that you need.