VIL - Verus Investments

[banska bystrica]

As posted yesterday on the other forum I shorted the entire 4.3c line for 5M shares one hour before the close. Confident about VIL long term but this will take months to test FP#1 properly and therefore I can see these announcements are the prelude to a cap raising at lower prices IMO.

 

[Solitus]

As posted yesterday on the other forum I shorted the entire 4.3c line for 5M shares one hour before the close. Confident about VIL long term but this will take months to test FP#1 properly and therefore I can see these announcements are the prelude to a cap raising at lower prices IMO.

Indeed. From yesterday's earlier announcement:

Verus anticipates commissioning of the production line to take less than two months. During this
period, the geologists and geophysicists who form part of the JV technical team will continue to
review and interpret all data.

Sounds like we have 7-8 weeks of construction during which they're just recycling the existing data gathered from this 10' interval.

Once the production line is commissioned, then they can get on with serious testing as they won't be bound by the 3-day flare limitation in Louisiana.

Whilst I haven't shorted VIL, I did sell my free-carried holding and will buy it back a little larger. The two announcements yesterday seem to indicate they're trying to hold the SP around the 4c resistance line - the cynic in me wonders whether they'll keep making announcements like this every time the SP drops to 3.6c, and will then come out with a cap raising at 3.5c.

Of course, I'm just speculating here based on nothing more concrete than the pattern in my tea leaves, so do your own research and readings!

 

[sjx]

Have you covered your short banska bystrica? Do you personally feel we will see further weakness Sub 3c?

Interested in your thoughts. You've got balls to short something like VIL, but its seems to have paid off nicely for you.

Regards

 

[questionall_42]

As posted yesterday on the other forum I shorted the entire 4.3c line for 5M shares one hour before the close. Confident about VIL long term but this will take months to test FP#1 properly and therefore I can see these announcements are the prelude to a cap raising at lower prices IMO.

BB - Just wondering who you shorted VIL with? Didn't think you could short with penny dreadfuls... Maybe I have misinterpreted what you have done.

 

[sjx]

BB - Just wondering who you shorted VIL with? Didn't think you could short with penny dreadfuls... Maybe I have misinterpreted what you have done.

Its up to the brokers discretion to allow their clients to short. Usually you will have a healthy client/broker relationship and bank balance, for the broker to allow you to do it. (Sophisticated investor level, for example)

I'm going to quote a poster from another forum, within in regard to people can short 'penny dreadfuls'. This is a good description of how the shorting or the "securities lending" is done. The rules can somewhat be exploited as result. Hopefully this will lend a hand to those who merely understand you can only short what your the list says you can.

"There is a slight difference in terms 'short selling' and 'securities lending'. Naked short selling is prohibited on all stocks.

Covered short selling is restricted to certain stocks that meet market cap, liquidity and certain other criteria, and is capped at 10% of a companies stock.

With covered short selling their is no agreement between owner and shorter. The broker simply covers one clients request with an opposing clients stock(without informing them) and makes sure he has plenty of excess stock. This must be reported.

When entering into a securities lending agreement, the borrower becomes the beneficial owner. Basically, since the investor now owns the shares, he isn't shorting. He is no longer restricted to the shares on the stock exchanges official short selling list. And their is no requirement to report." - Nathanblack, "Hotcopper" 6/3/10

I don't think BB will be posting which broker it is, understandably. BB couldn't have shorted essentially.. but he has a "securities lending agreement" with his broker.

 

[banska bystrica]

You cannot legally naked short but you can short any listed stock so long as you hold the securities. Any decent broker will do this for their clients.
My broker requires a certain amount of cash in the trading account as collateral and you also have to be officially registered as a "sophisticated investor" with the broker. I do not currently have a short position in VIL. I closed it out at 3.2c. I would buy this stock between 2c and 2.5c as that's where they will probably have to do a cap raising. It's hard to see it being done at much higher prices than that given it's currently 3c.

 

[banska bystrica]

Long term I still think the Fausse Point project has nice upside but I comfortably shorted another 1M VIL at 4.1c and happy to do so. I think the announcement by VIL was positive but it reinforced my opinion some sort of dilution is coming. Confident this will go lower than 4.1c in the short/medium term.

Nice to get it right sometimes.
Stock looks particularly weak today with a single 7M sell order sitting at 3.2c.

 

[McCoy Pauley]

Anyone still interested in this company?

VIL released an announcement to the market yesterday updating holders on the progress of Fausse Point #1 and Fausse Point #2.

http://www.asx.com.au/asxpdf/20100517/pdf/31qcwr0jpwpcmj.pdf

Fausse Point #1 will finally enter production and VIL is keen to start drilling FP#2.

Share price took a slight uptick yesterday but I think gains were reversed today.

 

[pilots]

If they are so keen to drill the second well they should not talk about the potential of the second site, they should have one.

 

[McCoy Pauley]

VIL announces to the market that it's raised $1.1 million at 2.2c/share through placement of shares with clients of Minc Stockbroking to fund VIL's investment in the Bongo Prospect in Wharton County, Texas.

http://www.verus.com.au/aurora/asse...ement_-_Bongo,_AEA_and_Placement_clean[1].pdf

Share price promptly drops like a stone today, given the significant discount between the price for the placement and yesterday's closing on-market price.

All this for slightly less than a 10% interest in the Prospect.

Hmmm.

 

[Putty7]

VIL had a bit of a run today, they have finished messing around with the testing in the bottom zone and are now moving up to test the more promising zones that were encountered in FP-1.

Results from the Bongo well that they farmed into should be in soon, be it good or bad.

FP-2 drill date could also be announced soon.

Flow rates from the higher levels of FP-1 soon.

Could be enough coming up to give it a run again, finished strongly today, tomorrow will be interesting to watch.

 

[King EU]

This thread's been pretty quite recently so I thought i'd bump it with something that i found a bit odd. According to today's course of sales, someone decided to offload over $198,000 worth of stock at around 3:25pm this afternoon...

That’s a lot of shares...

 

[pilots]

Well if you was in the know you would have sold as well, this is how VIL has works.

 

[King EU]

Well if you was in the know you would have sold as well, this is how VIL has works.

I'm not so sure.

I'm no pro, but i don't see any reason to want to bail out of vil (especially at an 18 month low). It was actually going quite well today until the same thing happened at around 3:10pm, so i think someone is purposely trying to suppress the price at 0.013 but i don't know why someone would want too.

 

[petee]

VIL-this makes me laugh

Take a read of the crying and wailing over on the VIL posts on hotcopper. Botkiller says he has been "milked" out of 40K by directors of VIL.What a joke VIL was one of the most speculative dogs on the market and anyone talking class action and blaming anyone else for their greedy gambling actions on such a highly speculative stock needs to take a good hard look at themselves.VIL ADX and XST came up with a duster its as simple as that.cheers

 

[vicb]

All quite on the VIL front. It feels like waiting for a slow death.