Stockpickers Consider Zion Oil a “Buy”
May 1, 2010 by admin
It seems that the stock pickers are finally considering Zion Oil & Gas a “buy”. Remember, these guys aren’t interested in the vision, mission or the biblical foundation behind the company’s search for oil in Israel. They’re hard core (not entirely well informed about Zion Oil) stock analysts. And they’re saying “buy”. Maybe they see something …
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April 28, 2010. Next up this morning is Zion Oil & Gas Inc., (ZN) http://www.zionoil.com/ currently trading in the $6.73 range on a 3-Month average daily trading volume of 115,181 shares. ZN was trading in the $10 range a year ago. ZN had a very choppy 2009 with some ‘extreme’ dips and spikes, somewhat leveling out in autumn at $10, then nose-diving in mid-Oct to $7. ZN dipped to $5 in early-Feb and has traded between $5 and $6 this month. ZN has a 52-week high of $14.61 set on 06-26-09. ZN holds 2 exploration licenses, Asher-Menashe License and Joseph License, covering approximately 162,100 acres onshore in the state of Israel between Netanya in the south and Haifa in the north. That is the value here. At less than half of its 52-week high, ZN is a short-term (6 Mo) ‘Buy’ consideration for me. Here’s why: at some point in the next 6-Months ZN has to drop some new wells or make a deal with a 3rd party to drill or start selling off parcels (that’s a lot of land). Actually beginning the process of producing oil would be a big boost to share value. If they just ‘sit’ on the land, they might as well start raising cattle or putting up wind farms.
This week ZN announced today it will be launching a rights offering. Holders of ZN common stock will be entitled to purchase additional shares of its common stock at a price of $5.00 per share. In the rights offering, stockholders as of 5:00 p.m., Eastern Daylight time on the record date of May 6, 2010, will be issued, at no charge, one-half (0.5) of a non-transferable subscription right for each share of common stock owned by the stockholder on the Record Date. This is equivalent to one (1) subscription right for every two (2) shares of common stock held by the stockholder on the Record Date. The rights offering will be conducted under an existing effective shelf registration statement.
ZN plans to use the proceeds from the rights offering: (a) to purchase a 51% interest in a new company (Zion Drilling, Inc. that will own a 2,000 horsepower drilling rig), and (b) to drill further ‘deep’ exploration wells on Zion’s licenses in Israel (in continuation of Zion’s oil and gas exploration efforts) and (c) for general corporate purposes.
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To develop into a real production company, Zion Oil & Gas will need a serious leap of faith. Zion is no oil sands driller, like Suncor Energy (NYSE: SU), which needed to wait until it became economically feasible to extract oil from an otherwise difficult location to make it to the big time. Zion has nearly a decade of experience of exploring for oil in Israel, but it still has no revenue or operating income to show for it.
Its vision is based on Biblical references to oil and natural gas existing in certain territories. But until it can prove that these resources do exist in sufficient quantities there, investors might want to focus instead on the “going concern” notice its auditor regularly files with the financial reports.
While johnsom3 believes “the science is proving the Scriptures,” doubter dubblebubbler says people also believe that “pro-wrestling isn’t fake.”
Zion doesn’t have an enviable track record, but 62% of CAPS members rating the exploration company believe it will outperform the market. Head on over to the Zion Oil & Gas CAPS page and divine your own opinion on its future.
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The stockmarket is legalized gambling. For every winner there is a loser. Zion’s expressed goal and objective is to find oil in Israel; it should take that noble goal to heart. Many ‘oil’ companies have fashioned good lives for their officers in the past by obtaining drilling rights and then using investor’s money in ‘attempts’ to find oil based on very little or incomplete science – charging management and operating fees for the financial benefit of the companies and sometimes to the detriment of investors. It is about time that some serious and relevent science be applied to finding hydrocarbons -such as Noble in the offshore gas play.
Speculation can and will continue to play a decisive role in the general perception of any company’s activities. It is the investor to decide who and what to believe. LET THE INVESTOR BEWARE!! Do your do-diligence.
I continue to wish Zion and other exploration companies operating in Israel all the best in their quest to discover hydrocarbon accumulations in Israel of very great magnitude. The ultimate benefit should always be for Israel’s sake!!!
There are no guarantees in hydrocarbon exploration attempts – even with the best available science – but there is a significant reduction in the risk of failure when all of the geological resources are considered.
Would like to know how i can purchase some of your common stock.
zion (zn) will bring oil to the surface in the next 12 to 18 months,and when the smoke clears it will be as big as Saudia Arabia. I have studied scripture for 20 years its not just the location of the drilling ( The tribeof Joseph) but the time is right. ( Prophecy ) Larry
I am interested in purchasing stock in Zion Oil. How do I do this?
OilinIsrael.net and the Oil in Israel newsletter are independent news sources, not owned or controlled by Zion Oil & Gas or any other exploration company. We offer news and insight into Israel’s search for oil.
For investment advice see your stockbroker or investment counselor.
Zion Oil is a publicly traded company (NASDAQ, ticker symbol ‘ZN’) you can buy Zion shares on the open market through your brokerage account. If you don’t have a brokerage account, they’re pretty easy to set up through your financial counselor or online at websites such as http://www.etrade.com.
As far as investing in Israeli companies on the Tel Aviv exchange, please see the article at: http://www.ehow.com/how_4728238_invest-israeli-stocks.html
Thanks for reading,
The stock market isn’t ‘legalized gambling’. ‘For every winner there is a loser’? Come -on, you can do better than that. The stock market is a platform where individuals or groups can participate in the ownership of public companies – nothing more or less.
Underneath your hyperbole, however, you make a good point; investors had better know what they’re getting into before they give money to a stranger – it’s called ‘due-diligence’ (not “do-diligence”, but I like the mistake). There have been some shaky (and shady) characters in Israel’s search for oil that shouldn’t have been trusted – from your comments, I’m guessing you may know of one in particular.
Here’s the rule folks: Don’t put money in something you haven’t checked out first. Oil exploration is a risky business anywhere, just ask BP. Every communication from a public company asking you to consider investing should contain a disclaimer similar to the one Zion Oil puts on all of their public correspondence:
FORWARD LOOKING STATEMENTS
Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, geophysical and geological data and interpretation, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, the sufficiency of cash reserves, ability to raise additional capital, the successful establishment of the drilling subsidiary and the negotiation and execution of definitive agreements with AME (the current owner of the drilling rig) with respect thereto, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
NOTICE
Zion Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, Zion Oil & Gas will send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466).
I would like to purchase stock in Zion oil but living in the UK I am not sure how to go about it. Is it possible from London? I have been so excited reading all about this ; The Lord’s timing is always perfect and his blessings on Israel are covenant. I pray He will enable your step of faith and trust in Him for His Glory.