Platina Energy: Updates Revenues

PLTG delivered some news on Friday which really wasn’t monumental. I believe it was a bit of a reach out to investors just so they know the company is out there and still moving forward.

The company announced it generated more revenues in July than it did in the entire previous quarter.

So, is this a big deal? Top line, no. In Q2, PLTG only generated $50,000 in revenues. Therefore, what we can take from this is revenues for Q3 will at a minimum be triple the revenues in Q2, albeit still at a very small number.

However, the news is not without merit. Here’s what is happening. PLTG has now drilled 10 producing wells in Kentucky. 4 of them are generating revenues right now. Those should be ongoing, recurring revenues. A well might come out of service temporarily, but not for long.

Therefore, we are going to get huge percentage top line moves in the coming quarters, but it won’t be a big number.

Here’s what investors need to look for. As the company brings these wells online and proves out its reserves, the stock will eventually get valued based more on their assets or proven reserves, vs the top line revenue figure.

As you can see, the stock appears to have found a bottom it likes around this $.05 level.

If you didn’t sell it when it violated my published SSL of $.10, it’s probably not worth selling now. I characterize the stock as more of a hold, but you can accumulate at these levels if you are a long term investor. When they get a little further down the road and the market turns sane, this stock will likely return to a reasonable level.

Comments and Questions are welcome.

One thought on “Platina Energy: Updates Revenues

  1. What do you hear on PLTG? What is your take on the quarterly? What is your opinion for the near and far future?

    Editor: I’m waiting for the quarterly numbers to make a comment. I really want to see how much dillution there is.