Stock Alert for Alexza Pharmaceuticals Inc. (ALXA)
  • Stock Alert for North Springs Resources Corp. (NSRS)
  • Stock Alert for BioFuel Energy Corp. (BIOF)
  • " />

    Stock Alert for Legend Oil and Gas Ltd. (LOGL)

    Legend Oil and Gas Ltd. (LOGL) is a managed risk, oil and gas exploration/exploitation, development and production company with activities currently focused on leases in Canada, southeastern Kansas and northern North Dakota.

    Share Statistics (23-Nov-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol LOGL Revenue, $Mn 0.00 0.02 0.00 0.07
    Current price $1.24 Gross marg. 0.0% 100.0% 0.0% 100.0%
    52wk Range: $0.58-$2.74 Oper. margin -929.7% -708.2%
    Avg Vol (3m): 280,260 Net margin -800.0% -685.7%
    Market Cap. 58.30M              
    Shares Outstanding 47.02M EPS, $ 0.00 0.00 0.00 -0.01

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of LOGL surged 99.68% to close Wednesday at $1.24, extending gains for the second day in a row.  It has a 52-week range of $0.58 to $2.74.  Over 3.55 million shares have traded hands during the session, versus the 10-day average volume of 467.73 K. LOGL is currently trading below its 50-day and 200-day moving averages of $2.09 and $2.19, respectively.

    Shares of LOGL have dropped 42.9% in the last five days and 42.9% in the last month.  Year-to-date, the stock is up 1,109.8%.

    LOGL last week provided its shareholders an update on recent developments.

    As previously announced in October, LOGL closed the acquisition of producing and non-producing oil and gas assets from International Sovereign Energy Corp. (Sovereign).  Combined with the production from the Company’s U.S. assets in Kansas, LOGL reported that its total production at closing was over 300 BOE/d (barrels of oil equivalent with gas converted at 6:1).

    LOGL intends to file a Current Report on Form 8-K with the SEC to provide pro forma financial statement disclosures for the said acquisition.

    The Company said it has set up a Canadian office in Calgary, Alberta to support the development and management of its Canadian assets. It has also hired a petroleum engineer in the position of manager of engineering and a controller to manage the day to day operations of these acquired assets.

    “The acquisition of the Sovereign assets, coupled with the recent drilling success we have had in Kansas, moves Legend from a start-up E&P company to a functional energy company with a significant inventory of drilling opportunities, a large amount of un-developed acreage to assess for additional exploration and development, complimented by an increased staff with which to administer these and future assets,” Marshall Diamond-Goldberg , president of LOGL, said in a statement.

    Responding to recent short seller articles, the Company last week said it strongly and vigorously deny the allegations made by Isaac Silbermann, who suggested that the Company had engaged in stock promotion activities.  Silbermann cited three advertising articles written by James Rapholz, Eric Dany, Don McShane, which were paid for by Darvin Consult SA.

    “Neither of our officers and directors, Mr. Marshall Diamond-Goldberg and Mr. James Vandeberg, nor anyone else acting on our behalf hired or paid for any such stock promotion articles (including these three specific articles), nor do we know or have any relationship, directly or indirectly with Darvin Consult SA , James Rapholz, Eric Dany, or Don McShane,” the Company said in a statement.

    Source: http://legendoilandgas.com/index.php/2011/11/23/legend-oil-and-gas-ltd-responds-short-seller-company-update/

    Financial Summary

    LOGL had a net loss of $476 K for the three months ended September 30, 2011, compared to a net loss of $44 K for the three months ended September 30, 2010. It had a net loss of $708 K for the nine months ended September 30, 2011, compared to a net loss of $72 K for the nine months ended September 30, 2010. The Company attributed the period to period increase in net loss to an increase in costs and operating expenses without a commensurate increase in revenues.

    For the three months ended September 30, 2011, and June 30, 2011, the Company generated revenue of $67 K and $50 K, respectively, principally from its oil production in the Piqua properties in Kansas. Oil production (Bbls) increased 62.5% during the three months ended September 30, 2011, as compared to the three months ended June 30, 2011. Production increased due to the completion of drilling three wells, the recompletion of the drilling of a fourth well, and general streamlining and improvements to its existing well operations. LOGL’s revenues in the nine months ended September 30, 2011, and 2010 were $163,000 and $nil, respectively.

    The average price per barrel during the three months ended September 30, 2011, and June 30, 2011, was $80.79 and $97.22, respectively, a 16.9% decrease.

    Source: http://biz.yahoo.com/e/111114/logl.ob10-q.html?legacy=1

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    LOGL is below the lower Bollinger Band, implying that it is currently extended to the downside from its recent trend.

    The MACD for LOGL currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Nov23-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Mexco Energy Corp. MXC 6.51 13.21M n/a n/a n/a n/a
    Lucas Energy Inc. LEI 1.88 36.69M n/a n/a 8.99 n/a
    Independent Oil & Gas Median       18.99 n/a 6.47 n/a
    Legend Oil and Gas Ltd. LOGL 1.24 58.30M n/a n/a n/a n/a

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *