Oil Sands Stock-US Oil Sands Inc. Review

Picking an Oil Sands Stock that has any potential at all takes some knowledge and extensive research. It is no secret that Oil Sands are not popular with environmentalists and most lobbyists all over the world. Getting accepted into an country or area is a very long and expensive process. There are so many hoops to jump through that can eventually kill any project by siphoning all the money away from people that have invested into the company. This happens all the time.
But there are warning signs and red flags that wave so obviously in everyones face. Do not take these cautions lightly. The Smart Money takes all these red flags seriously and can exit any investment quickly while your nest-egg is on a downward spiral. US Oil Sands Inc. has some very serious obvious issues that have me worried. You see, I have been a shareholder of the intitial company that went public to create US Oil Sands Inc since 2005. That initial company was Earth Energy Resources and the process they claimed to have perfected was called the "Orpheus Process". You can do some research on this company also.
EER went public by a process called "Reverse Takeover" Here is a quick definition:

What Does Reverse Takeover – RTO Mean?
A type of merger used by private companies to become publicly traded without resorting to an initial public offering. Initially, the private company buys enough shares to control a publicly traded company. The private company's shareholder then uses their shares in the private company to exchange for shares in the public company. At this point, the private company has effectively become a publicly traded one.

Read more: http://www.investopedia.com/terms/r/reversetakeover.asp#ixzz1W9sUOiWX

There are many problems associated with this type of transaction and most of them involve the liquidity and future operating expenses of a new company. Most stock experts will caution any investor to stay away from any company involved in this situation. Here are some things I noticed about this stock.
1.Something I noticed lately while looking at the USO.V charts is that there are huge daily swings with lower than average volume. A 20 cent stock that moves 4 cents one day and then moves 4 cents in the opposite direction the next day is not something I want to see. Experience tells me that this is mostly "smoke and mirrors".
2.The new company will release old "Press Releases" from the initial company to stir up some excitement. This is old news and usually does not show any forward movement since the initial release.
3.Stock price continues to deteriorate much like this stock has done since its very first day and volume is is pretty much at all time lows.

In my humble opinion,this stock is headed for a 5-10 cent range and will quickly end up losing many investors hard earned money. I would not invest in a company with this many red flags and illusions. Make sure you look at the entire history of a stock and get some professional advice from expert stock traders.

Oil Sands Stock-US Oil Sands Inc. (USO.V) Update

August 29/2011

Today the stock hit another low of .165 cents. But what is more alarming is the spread between the bid and the ask. Any seasoned stock trader or broker will caution you about a stock that has a wide spread. USO.V also had a spread of 3 cents today. This has to be a blatant sell sign and a "Get the heck out of this trade" signal. If this stock was worth anything the spread would only be a half a penny and at most 1 penny.

Just as an example, take a look at another penny stock in the same price range, almost the same volume and the same stock exchange. Selwyn Resources Ltd. (SWN.V) has a bid of .195 and an ask of .20  Ask your self why this happens then go and do some research into both companies. Selwyn Resources Ltd. is a real business with functioning day to day activity, product creation and the basic R&D most legitimate businesses conduct on a day to day basis.

Make sure you check out a company thoroughly.Look into its past history, the new directors and their past history. The old saying "Sell on news/buy on fact" holds true for any company. Protect your investment and always dig deeper than most and you will make more money than most.

These are my humble opinions after nearly 20 years of investing and educating myself after getting burned by the promising promoters.

Oil Sands Stock-US OIL SANDS INC (USO.V) Update

September 20 2011

As soon as this stock went public via "Reverse Takeover" I cautioned that it was headed for the 5-10 cent range. Today the stock edged even closer to that mark. As of 11:02am this morning the bid currently sits at 13 cents and the ask is 14 cents.

If you're thinking of averaging in just to get the average purchase price lower…think again. The old saying of "The Trend Is Your Friend" will not change any time soon especially with this stock. In my opinion it is headed for my original prediction of between 5-10 cents. There is no reason for anything to change. But if a miracle happens and I really believe that there is substance to any new news, I will investigate and get back to you.

For now the stock…again..in my opinion is a Very Strong Sell.

Happy trading!

US OIL SANDS INC (USO.V)

September 24th Update

Well it has happened. Today this stock hit a Bid of 10 cents and  the Ask was 11 cents. The stock has hit that critical point of 10 cents just as I predicted. Once again, this trend will not change anytime soon until all the juice is sucked out this stock. I warned about how this stock entered Public Trading and I strongly warned about the "Trend" it was following.

If you are still in the stock (no idea why you would still own it) It is time to get over the emotions and learn how to really invest in risky stocks, and this is a 10 on my "Risk" chart. By the way…10 is the maximum and it doesn't get any worse. Even in a good trading environment like today, this company managed to get its net worth slaughtered once again.

Be ready to welcome 5 cents on this stock and quite possibly lower. There is my 2 cents worth.

Happy Trading!

Oil Sands Stock

It is no secret that certain Oil Sands Stock will start to emerge as block-buster investments. Nobody seems to care that current Oil prices are hovering around the $115 mark. The buzz is on gold and silver. These commodities aren't present in our every day life like Oil.

What Are Oil Sands Anyway?

Oil sands are a mixture of sand, bitumen and water. Every single grain of oil sand has three layers -

An "envelope" of water surrounding a grain of sand, with bitumen surrounding the water to form the outer layer. Bitumen is a heavy viscous crude oil, which contains high amounts of sulfur and will not flow through rocks, wellbores or pipelines in its naturally occurring state. Bitumen can be processed into high quality, synthetic oil that is in demand for upgrading to gasoline and jet fuels and other refined products.

So, . . . if we are running out of oil and cleaning up the Oil Sands is an option . . Then why not proceed? Because traditional methods would devastate the environment, that's why. Oil Sands Stock are not very attractive because environmentalist think it will kill the earth. Hmmm . . . I thought removing the Oil from the earth would be a good idea. You know . . . Clean up our backyard to make way for some sort of positive land use instead of letting the Oil Sands seep into our water table.

US Oil Sands Inc. Review (USO-TSX Venture)

One does have to do their due diligence and really investigate an Oil Sands Stock company,their past,their future and how long it has been since they actually did anything with their technology. I have followed one company since 2005. Earth Energy Resources caught my eye because of a revolutionary way the technology supposedly extracted the oil from oil sands. The system they use  is called the Opheus Process.

Here it is in a nutshell: The extraction process uses little water while separating material from Oil Sands and leaves behind no toxic chemicals or tailings ponds in the process. This system operates with low temperature that produces clean water and sand along with reducing costs while extracting Oil Sands bitumen.

It sounded good to me but nothing happened with the company except for some press releases up until April 22 2011. Earth Energy Resources went public via a reverse takeover. Just so you know..this reverse takeover process is a huge red flag among stock brokers and most stock traders because it is sort of a basement back door for a company to go public if there is no other way to get the process done. The stock usually goes nowhere and ends up losing shareholders most of their money. This next section will explain how this all worked with Earth Energy Resources:

Please find attached our letter to shareholders explaining the attached
press release concerning Earth Energy Resources and our "going public"
proposed transaction by way of a reverse take-over ("RTO") of International
LMM Ventures Corp., ("LMM"), a publicly listed company on the TSX-Venture
Exchange.

A copy of the LMM press release can be found at
http://newswire.ca/en/releases/archive/January2011/24/c4593.html

In short, the Proposed Transaction sees Earth Energy become a publicly
listed company.  Earth Energy shareholders will receive 4 LMM shares for
each share of Earth Energy that you hold.  LMM will then carry on the
business of Earth Energy in the public company.  Concurrent with the RTO, we
will complete a $12.6 million financing with a second financing to follow
thereafter, for a total target financing of $48 million.  Your Directors and
Management have been working hard at this transaction since late August and
are very pleased that we have been able to finalize negotiations on this
financing and fully support approval of the Proposed Transaction.

We expect that it will take to the end of March to work through the various
shareholder and regulatory approvals.  Over the next four weeks, we will
prepare and mail a shareholder information circular that will be mailed to
all shareholders of record.  We will hold a Special Meeting of Shareholders
in late March whereat shareholders will be asked to consider and approve the
Proposed Transaction.

We are also pleased to report that we will be closing the acquisition of
lease rights for 23,850 acres of land on trend with our current 7,935 acres
that we currently lease form the State of Utah.

In summary, we are very excited about this news which positions Earth Energy
to become the leading producer of bitumen from oil sands in the United
States.  We will be well financed with access to public capital markets and
have a significant land position in the largest oil sand deposit in the
United States, a country committed to enhancing its energy security and
domestic supplies of oil.

Here is a chart since US Oil Sands Inc Open on April 22:

Since I owned shares in the company I decided to investigate International LMM Ventures Corp., ("LMM"), a publicly listed company on the TSX-Venture. After digging deep into the history of the Directors involved in the company I found a massive amount of delisted and worthless companies.  As soon as I could, I sold all my shares in the newly formed company US Oils Sands (USO.V) after watching the share price go from its open of .48 on April 22nd to .22 as of June 24th 2011. I personally saw this coming and got out. There is no way I would ever invest in this company again after what I experienced. So it's buyer beware. There are many other established and credible Oil Sands Stock. Check them out first and stay away from anything that has a Reverse Takeover attached to it.

USO Press Releases.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20110419&archive=cnw&slug=C5552

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20110419&archive=cnw&slug=C5436

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20110124&archive=cnw&slug=C4593

Try this quote out for size and then check it against your everyday activities as you drive to work, school, parties, your friends home, visit relatives, go on vacations and so on.

“If it weren’t for oil they wouldn’t be riding those bikes, they’d be walking, barefoot, naked with no glasses! Not to mention the streets would be dirt, not paved. There would be no electric lights, no drinks at the end of the ride, no music. Should I go on?”

I decided to go one step further and check out some other products that are not so popular.

Check this out!

• Guitar Strings
• Panty-Hose
• Golf Bags
• Candles
• Hair Colouring
• Aspirin
• Footballs
• Food Preservatives
• Shampoos
• LipStick
• Ammonia
• Your Pillows

Do your own investigating and check this site out: Arctic National Wildlife Refuge. This site exposes a interesting list of oil uses on its Web site. Then tell me that there are so many alternatives. Sure there are. But at what cost? How efficient? And when?

Here are some questions:

• Are we running out of oil?
• Who do we believe?
• How do we prepare if things really get harsh?

Historical Facts Of Interest About Oil Sands and Oil Sands Stock

The earliest known history of the oil sands dates back almost 300 years ago. The local Aboriginal people used the bitumen from the oil sands to waterproof their canoes.

It was in 1719 that the oil sands were first formally mentioned in Canadian history. "Wa-pa-su, of the Cree First Nations, brought a sample of the oil sands to the Hudson Bay post at Fort Churchill. The sands were described as 'that gum or pitch which flows out of the banks of that river.'"

The first European to see the Athabasca oil sands was fur trader Peter Pond, who was lured to the area in 1778 by tales of the rich fur harvests there.

Other explorers were equally fascinated by the oil sands, including map maker David Thompson and Arctic explorers Franklin, Richardson and Simpson.

The first government-sponsored geological study of the oil sands was initiated in 1875 and carried out by John Macoun. Robert Bell headed another government expedition into the area seven years later.

The first attempts to develop the Athabasca Oil Sands commercially were made under the assumption that the bitumen in the area must be coming from pools of oil deep beneath the surface. In an attempt to locate these pools, Alfred von Hammerstein drilled the first wells in the region, north of Fort McMurray. Altogether, between 1906 and 1917, about 24 wells were sunk in the search for the mother-lode of oil. None were successful at finding oil, but they did discover salt which became a major industry in the Fort McMurray area for 50 years.

The first producing oil sands project was the Great Canadian Oil Sands (GCOS) Project.

Canada is the largest source of oil for the United States, supplying nearly a million barrels a day from oil sand sources. Oil Sands Stock popularity is growing as more people become aware of the potential this resource has.