They seem to be stingy with the advertising compared to some other explorers. Cost saving measure?

Here’s a little story that might help. Last year I purchased some shares of IRE… (Irish Bank) the stock had went through hell and got so cheap I couldn’t help it. I made about a 1.50 profit/share and said… that’s good… move on because it’s a trade. I sold it because I NEVER LIKED THE DEBT THEY WERE CARRYING FROM THE TIME I BOUGHT IT. If I would have waited the profit would now be 4.25/share.

Without loss you don’t have profit and without profit – loss.

Before we continue… all projects need financing. How much? Depends on many factors. How long depends on many more.

As investors we are not accountants. We are observers of the business accounting practice. It’s easy to say that a company will need this or that simply by putting some numbers together.

For instance… It’s easy to say that during the last few months MTO:

(This is only an observed calculation on working capital... there are other things to consider).

NWC=7  785 423 (Neg. Working Cap.)

IFP= (1718+1715+1250)1500=7 024 500 (Production Income)

Fi=2 642 678 (Recent Financing)

WC= (7 024 500+2 642 678) =9 667 178 (Working Cap.)

Although financing may be an option down the road… and very few companies will refuse it when offered. Currently they appear to have about 2M working capital (to date about even). This combined with a continued income stream puts them far from broke.  An explorer that doesn’t produce has a better chance of going broke. Besides,  Yellow Pages were broke and they are still in business. Let’s see what MTO can do with their books. We already know the tax advantages are huge. They are not going to be as creative as a hedge fund ledger (Did you ever read a hedge funds annual report) but I am sure it will be interesting. I would like to see the details on the 4th and 1st quarter operations. That will tell a tale.