Stock Buy - Osprey Energy Acquisition Group (OSPR)

Updated 7-31-19

A few notes on this investment. The price currently sits at $7.91 and is not unexpected.

I haven't had a chance to review the latest filings to see if my investment thesis has changed. Some investment advice for free: it's not very wise to not read keep up with your investments on at least a quarterly basis. I don't watch the stock ticker daily.

Osprey has undergone a couple of changes since I last posted.

First, the acquisition of Royal Resources LP was completed. In conjunction with the closing of the deal, Osprey changed its name to Falcon Mineral Corp and is trading on the NASDAQ as FLMN.

I will post more updates once I spend some time reading the latest filings.

Original Article - 6-22-18

I've wanted to get back in the investment game again. It's not really a game. I carefully consider the risks involved and the potential returns.

After careful consideration I decided to invest in Osprey Energy Acquisition Group.

OSPR is a blank check company that acquired mineral rights to leases is the Eagle Ford shale fields.

Make no mistake, this is a high risk investment. Currently, outside of the IPO and some warrant placements, the cash flow is nil, nada, zero.

What I'm buying is future earnings and cash flow that is currently untapped in the ground and the management team has the ability to create cash out of the ground. I'm also buying on the management teams past history of unlocking value from high risk situations.

There is a higher than usual risk of losing capital in this investment. My investment thesis rests on the potential of converting natural resources into cash.

When I write about investing, I never reveal a dollar amount I invest. I refer to positions. A full position refers to the amount I consider the most I'm willing to invest in most stocks I buy. Based on my investment thesis, I may buy a higher or lower amount of a full position.

For OSPR, I'm debating on how much to buy. I'm purchsaing my first batch in a week. I'm leaning to buying an initial half of what I consider a full position. My ultimate goal to buy a minimum of a full position and possibly over by a third.

My preferred entry price is $12.50 per stub. My goal is a minimum of a double but that would be a major disappointment. I believe that the initial investment will return ten times my investment.

Again, this is a highly speculative investment with high risk, high reward potential.

Don't buy on my writing. Do your own due diligence.

Updated Watch List 04-11-18

I've been waiting for the Saudi Aramco IPO. It was supposed to happen in the first quarter 2018. We are eleven days into the second quarter.

So what is the next best way to get a piece of the Saudi action? You know, wet your beak a little? Invest in companies with ties to the House of Al Saud.

A Little Background on Me

 I work in the O&G business...Oil & Gas. One of the best pieces of investment advice I can give is "invest in what you know." So I look for opportunities in my industry. I don't often find to much.

But it doesn't hurt to keep a watch list in my industry.

What Do I Know?

One of the reasons I'm interested in the Saudi Aramco IPO is because not only am I in the O&G business but I've been involved in Saudi ventures. 

Disclaimer: I don't own stock in any Saudi companies, subsidiaries or have any insider knowledge of any Saudi moves. What I know is from public info and nothing proprietary from my experience in the business.

It's no secret that the Saudis want to diversify. They are starting to realize that they cannot sustain drilling and selling oil. There is more money to be made in diversifying into all aspects of the petrochemical business.

SABIC (Saudi Basic Industries Corporation) is opening a massive project in Corpus Christi, Tx. 

Saudi Aramco just announced a big investment in TechnipFMC which is a public company. Honeywell UOP is also discussed in the article but they are not a publicly traded company. The article is worth the read.

Up In Smoke

John Boehner is joining the board of Acreage Holdings. Unfortunately they are not a public company either but it's worth looking for investment opportunities in the growing marijuana field.