"Investors cannot be an expert in determining whether a company is genuine or not, while investing in an equity market. If someone does not possess that expertise, then it is best advisable in long-term funds that will give assured returns," he said in CNBC-TV18's show Depositor Protect Thyself.
For the past three to four years, con jobs or fraudulent companies attracting investments from individuals have risen, so an ordinary investor should first find out whether that company is regulated or not, he added.
He also elboarted on the role of Sebi as a market regulator.
Below is the edited transcript of his interview to CNBC-TV18.
Q: First, a broad outline as to how Sebi prevents fraud. What, basically, are the kinds of fraud or con jobs that companies indulge in? Can you give us a broad outline?
A: What we are noticing in the last three, four years is that companies which are not regulated by any central agency, are trying to reach out to individuals and raising money.
Top 10 Machinery Stocks For 2015: Mid-Con Energy Partners LP (MCEP)
Mid-Con Energy Partners, LP, incorporated on July 27,2001, is engaged the acquisition, exploitation and development of producing oil and natural gas properties in North America, with a focus on the Mid-Continent region of the United States. It operates as one business segment engaged in the exploration, development and production of oil and natural gas properties. Its properties are located in the Mid-Continent region of the United States in three core areas: Southern Oklahoma, Northeastern Oklahoma and parts of Oklahoma and Colorado within the Hugoton Basin. Its properties primarily consist of mature, legacy onshore oil reservoirs with long-lived, relatively predictable production profiles and low production decline rates. During June 2012, it acquired properties in the Northeastern Oklahoma area and additional working interests in its existing units in the Southern Oklahoma area in separate transactions, subject to customary purchase price.
As of December 31, 2012, its total estimated proved reserves were approximately 13.1 MMBoe, of which approximately 99% were oil and 67% were proved developed, both on a Boe basis. As of December 31, 2012, it operated 99% of its properties through its affiliate, Mid-Con Energy Operating and 99% of its properties were being produced under waterflood, in each instance on a Boe basis. Its average net production for the month ended December 31, 2012 was approximately 2,376 Boe per day and its total estimated proved reserves had an average reserve-to-production ratio of approximately 15 years. It has developed approximately 53% of total proved reserves through new waterflood projects.
The Company operates approximately 99% of its properties, as calculated on a Boe basis as of December 31, 2012, through its affiliate, Mid-Con Energy Operating. All of its non-operated wells are managed by third-party operators who are typically independent oil and natural gas companies. It designs and manages the development, recompletion or workover for all of! the wells it operates and supervise operation and maintenance activities.
Southern Oklahoma
The Highlands Unit is in the SE Joiner City Field, an oil-weighted field located in Love County, Oklahoma. Production from the Highlands Unit is from the Deese formation at an average depth of approximately 8,000 feet. The Highlands Unit was formed and is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. It owns 32 gross (23 net) producing, 24 gross injection (17 net) and three gross (two net) recently drilled but not completed wells in this unit with an average working interest of 71%. As of December 31, 2012, its properties in this unit were producing 947barrels of oil (Boe) per day gross, 547 Boe per day net, and contained 3,665 million barrels of oil (MBoe) of estimated net proved reserves.
The Battle Springs Unit is in the SE Joiner City Field, an oil-weighted field located in Love County, Oklahoma. Production from the Battle Springs Unit is from the Deese formation at an average depth of approximately 8,850 feet. The Battle Springs Unit was formed and is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. It owns 25 gross (13 net) producing, 18 gross injection (nine net), and one gross (one net) recently drilled but not completed wells in this unit with an average working interest of 51%. As of December 31, 2012,, its properties in this unit were producing 609 Boe per day gross, 248 Boe per day net, and contained 964 MBoe of estimated net proved reserves.
The Twin Forks Unit is in the SE Joiner City Field, an oil-weighted field located in Carter County, Oklahoma. Production from the Twin Forks Unit is from the Deese formation at an average depth of approximately 7,000 feet. The Twin Forks Unit was formed and is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. It owns 10 gross (seven net) producing, four gross (three net) i! njection ! and one gross (one net) recently drilled but not completed wells in this unit with an average working interest of 64%. As of December 31, 2012,its properties in this unit were producing 975 Boe per day gross, 503 Boe per day net, and contained 1,157 MBoe of estimated net proved reserves.
The Ardmore West Unit is in the Ardmore West Field, an oil-weighted field located in Carter County, Oklahoma. Production from the Ardmore West Unit is from the Deese formation at an average depth of approximately 7,200 feet. It owns four gross (four net) producing and four gross (four net) injection and 3 gross (3 net) recently drilled but not completed wells in this unit with an average working interest of 97%. As of December 31, 2012,its properties in this unit were producing 34 Boe per day gross, 26 Boe per day net, and contained 744 MBoe of estimated net proved reserves.
The Southeast Hewitt Unit is in the SE Wilson Field, an oil-weighted field located in Carter County, Oklahoma. Production from the Southeast Hewitt Unit is from the Deese formation at an average depth of approximately 6,000 feet. The Southeast Hewitt Unit is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. As of December 31, 2012, its properties in this unit were producing 192 Boe per day gross, 36 Boe per day net, and contained 111 MBoe of estimated net proved reserves for this unit.
Northeastern Oklahoma
The Cleveland Field is an oil-weighted field located in Pawnee County, Oklahoma. Production from the Cleveland Field is primarily from the multiple Pennsylvanian age sands at depths from 1,000 to 2,400 feet. Approximately 1,800 gross acres in the Cleveland Field is being operated by its affiliate, Mid-Con Energy Operating. Approximately 1,000 of the total 1,800 gross acres have been acquired in the last four years. It has been actively developing its Cleveland Field leases through drilling, recompletions and workovers, resulting in increase of net prod! uction wi! thin the last two years. The majority of Mid-Con Energy Operating operated leases are produced under waterflood. It operates 118 gross (114 net) producing wells and 29 gross (27 net) injection wells in this field with an average working interest of 97%. As of December 31, 2012,, its properties in this field were producing 320 Boe per day gross, 269 Boe per day net, and contained 2,127 MBoe of estimated net proved reserves. The Cleveland Field is flooded on a lease basis and not as a unit, with the date of production response to injection varying from lease to lease.
The Cushing Field, one of the oil fields (by total historical production volume) in the United States is an oil-weighted field located in Creek County, Oklahoma. Production from the Cushing Field is primarily from multiple Pennsylvanian age sands at depths from 1,200 to 2,500 feet. Its affiliate, Mid-Con Energy Operating, operates approximately 3,360 acres in the Cushing Field, the majority of which are being produced under waterflood. It operates 79 gross (30 net) producing wells and 39 gross (14 net) injection wells in this field with an average working interest of 37%. As of December 31, 2012,its properties in this field were producing 346 Boe per day gross, 108 Boe per day net, and contained 689 MBoe of estimated net proved reserves. The Cushing field is flooded on a lease basis and not as units, with waterflood responses varying from lease to lease.
The Skiatook Waterflood Project is in the Skiatook Field, an oil-weighted field located in Osage County, Oklahoma. Production from the Skiatook Project is primarily from the Bartlesville and Burgess formations at an average depth of approximately 1,600 feet. The Skiatook Project was developed by and is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. It owns 13 gross (13 net) producing and 3 gross (3 net) injection wells in this field with a working interest of 100%. As of December 31, 2012,its properties in this fi! eld were ! producing 38 Boe per day gross, 31 Boe per day net, and contained 218 MBoe of estimated net proved reserves.
Hugoton Basin
The War Party I and II Units are in the SE Guymon Field, an oil-weighted field located in Texas County, Oklahoma. Production from the War Party I and II Units is from the Cherokee formation at an average depth of approximately 5,800 feet. As of December 31, 2012, its properties in these units contained 1,275 MBoe of estimated net proved reserves. Production As of December 31, 2012, was 254 Boe per day gross, 220 Boe per day net. These are mature waterflood properties which have already reached peak production rates and where injection commenced several years prior to its acquisition.
The Harker Ranch Unit is in the Harker Ranch Field, an oil-weighted field located in Cheyenne County, Colorado. Production from the Harker Ranch Field is from the Morrow formation at an average depth of approximately 5,200 feet. The Harker Ranch Unit was formed and is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. As of December 31, 2012,its properties in this unit were producing 148 Boe per day gross, 122 Boe per day net, and contained 208 MBoe of estimated net proved reserves.
The Clawson Ranch Waterflood Unit is in the North Hitchland Field, an oil-weighted field located in Texas County, Oklahoma. Production from the Clawson Ranch Waterflood Unit is from the Cherokee formation at an average depth of approximately 5,700 feet. The Clawson Ranch Waterflood Unit is operated by its affiliate, Mid-Con Energy Operating, and is being produced under waterflood. As of December 31, 2012, its properties in this unit were producing 256 Boe per day gross, 214 Boe per day net. As of December 31, 2012, the Clawson Ranch Waterflood Unit contained 1,654 MBoe of estimated net proved reserves. Proved producing and proved developed reserves represent 57% and 86%, respectively, of the total proved reserves for this unit as ! of Decemb! er 31, 2012.
Other Properties
Decker Unit is in the NW Little Field, an oil-weighted field located in Seminole County, Oklahoma. Production from the Decker Unit is from the Earlsboro formation at an average depth of approximately 3,600 feet. The Decker Unit was formed and is operated by itsaffiliate, Mid-Con Energy Operating, and is being produced under waterflood. As of December 31, 2012, its properties in this unit were producing 24 Boe per day gross, 19 Boe per day net, and contained 210 MBoe of estimated net proved reserves. As a result of ongoing response to waterflooding, proved producing and proved developed reserves represent 30% and 100%, respectively, of the total proved reserves as of December 31, 2012.
The balance of the Company�� properties, located throughout the State of Oklahoma, consist of a mix of operated and non-operated properties, none of which are under waterflood. As of December 31, 2012, its other properties contained approximately 124 MBoe of estimated net proved reserves and generated average net production of approximately 33 Boe per day for the month ended December 31, 2012.
Advisors' Opinion:- [By Elliott Gue, Editor and Publisher, The Capitalist Times]
Elliott Gue: Yeah, Mid-Con Energy, symbol (MCEP)—they produce oil. This is actually a master limited partnership, or MLP, so it's one of these kind of securities that tend to carry high yield. Currently the yield on that is around 9%, so it's well above the average for an MLP.
5 Best Forestry Stocks For 2014: Delcath Systems Inc.(DCTH)
Delcath Systems, Inc., a development stage company, operates as a specialty pharmaceutical and medical device company. It focuses on cancers in the liver. The company involves in the development and clinical study of the Delcath chemosaturation system. Its clinical trial include a Phase III multi-center study for patients with unresectable metastatic ocular or cutaneous melanoma exclusively or predominantly in the liver; and a multi-arm Phase II clinical trial of the Delcath chemosaturation system with melphalan in patients with primary and metastatic liver cancer, which comprise neuroendocrine tumors, hepatocellular carcinoma, ocular or cutaneous melanoma, and metastatic adenocarcinoma. Delcath Systems, Inc. was founded in 1988 and is based in New York, New York.
Advisors' Opinion:- [By Monica Gerson]
Delcath Systems (NASDAQ: DCTH) is expected to post a Q4 loss at $0.05 per share on revenue of $100.00 thousand.
Emerald Oil (NYSE: EOX) is projected to post a Q4 loss at $0.02 per share on revenue of $18.04 million.
- [By John Udovich]
Biotech in general has been one of the market�� hottest sectors this year thanks to plenty of mostly good news�along with�new IPOs while small cap biotech stocks Delcath Systems (NASDAQ: DCTH), ZIOPHARM Oncology Inc (NASDAQ: ZIOP), Recro Pharma (NASDAQ: REPH), TetraLogic Pharmaceuticals (NASDAQ: TLOG)�and TNI BioTech (OTCMKTS: TNIB) have also produced their share of news�this week or in recent weeks. Just consider the following:
5 Best Forestry Stocks For 2014: Excel Trust Inc (EXL)
Excel Trust, Inc., incorporated on December 15, 2009, is a vertically integrated, self-administered, self-managed real estate investment trust (REIT). The Company�� principal objective is to acquire, finance, develop, lease, own and manage value-oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. The Company conducts all of its business through Excel Trust, L.P., a limited partnership, or its operating partnership. The Company operates through three reportable business segments: retail properties, multi-family properties and office properties. The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. The Company is the sole general partner of its operating partnership. Excel Trust leases its properties to national and regional supermarket chains, big-box retailers and select national retailers that offer necessity and value oriented items and generate regular consumer traffic. In October 2012, the Company acquired six shopping centers. On January 24, 2013, the Company completed the acquisition of Tracy Pavilion, a retail shopping center with approximately 162,000 square feet of gross leasable area located in Tracy, California. In September 2013, the Company announced the sale of Grant Creek Town Center.
As of December 31, 2012, the Company owned a portfolio consisting of 30 retail properties totaling approximately 5.1 million square feet of gross leasable area, which were approximately 93.4% leased. The Company owns two commercial office properties, Excel Center, a portion of which is utilized as its corporate headquarters, and the Promenade Corporate Center. As of December 31, 2012, the Company had ownership interests in two unconsolidated retail properties totaling 225,113 square feet of gross leasable! area, which were approximately 65.5% leased.
Advisors' Opinion:- [By Marc Bastow]
Commercial and retail property owner-operator and real estate investment trust Excel Trust (EXL) raised its quarterly dividend 3% to 17.5 cents per share, payable on Jan. 15 to shareholders of record as of Dec. 31.
EXL Dividend Yield: 6.04%
5 Best Forestry Stocks For 2014: Re/Max Holdings Inc (RMAX)
Re/Max Holdings, Inc., incorporated on June 25, 2013, is a franchisor of real estate brokerage services. Its business is to recruit and retain agents and sell franchises. The Company operates in two business segments: Real Estate Franchise Services, and Brokerage and Other. The Company operates in the real estate brokerage franchise industry in more than 90 countries, including the United States and Canada. Effective December 31, 2012, the Company acquired certain assets of RE/MAX of Texas. Effective November 30, 2012, the Company sold substantially all of the assets of owned and operated regional franchising operations located in Eastern Australia and New Zealand and entered into regional franchising agreements with new independent owners of these regions.
The Real Estate Franchise Services reportable segment comprises the operations of its owned and independent global franchising operations. The Brokerage and Other reportable segment contains the operations of its 21 owned brokerage offices in the U.S. which represent less than 1% of RE/MAX brokerages in the U.S., the results of operations of a mortgage brokerage company in which the Company owns a non-controlling interest, the elimination of intersegment revenue and other consolidation entities, as well as corporate and professional services expenses.
Advisors' Opinion:- [By Eric Volkman]
Getty Images/Cultura As more than a few finance industry professionals will happily brag, 2013 was a banner year for initial public offerings with 156 new stocks coming to market -- the most since 2007 -- collectively reaping the issuers aggregate proceeds of more than $38 billion. We went over the most recognizable members of this year's rookie class in "The 5 Most Unfortgettable IPOs of 2013." But in a big pool of 156 companies, there are bound to be at least a few struggling fish. Here, then, is a selection of five from the class of 2013 that are getting seriously lapped by their peers. 1. Prosensa (RNA) This Dutch clinical-stage biopharmaceutical firm had a strong debut when it listed on the Nasdaq in late June. The stock's offer price of $13 zoomed to close at over $19 on the first day of trading. But bad news was waiting around the corner; less than three months later, the shares tanked by more than 70 percent after the company announced that the muscular dystrophy treatment (drisapersen) it was developing in partnership with GlaxoSmithKline (GLAXF), did not hit its primary endpoint in late-stage trials. That one-day free fall saw the stock swoon from $24 per share to barely over $7. Since then, shares have slipped even further, and can currently be had for less than $5. 2. Violin Memory (VMEM) As a provider of high-speed data storage solutions, this company should be well in tune with current IT needs. But it fell flat from the beginning -- on its first day of trading the stock closed slightly over $7 a share, after pricing at $9. Worse was to come when the firm reported its first quarterly results as a publicly traded entity. While revenue advanced nearly 40 percent on a year-over-year basis, that couldn't cover the gaping hole of a bottom line loss totaling $34 million (a figure, by the way, significantly higher than the top line number of $28 million). The already-sinking shares continued to dive, bottoming at just over $2.50 per share. The re
- [By Ben Levisohn]
Shares of Re/Max Holdings (RMAX) have surged out of the gate as investors scoop up shares following the real-estate brokers IPO.
ReutersShares of Re/Max priced at $22, above the range of $19-$21 it had been seeking. The Associated Press has the details:
Re/Max Holdings Inc. has raised $220 million in an initial public offering of its common stock.
Re/Max is giving the underwriters a 30-day option to buy up to an additional 1.5 million shares to cover any excess demand.
The company anticipates about $194.2 million in net proceeds, after underwriting discounts and commissions and estimated offering expenses. Re/Max plans to use the proceeds to reacquire regional Re/Max franchise rights in some markets, redeem preferred membership interests and buy back ownership stakes from existing shareholders.
�Re/Max shares have jumped 21% to $26.67 at 10:32 a.m. Investors might want to reconsider jumping in, however. Here’s what I wrote about IPOs�back in 2011 and it still stands today.The IPO game is notoriously dicey for retail investors. That’s because most of the shares sold at the low offering price go to institutions; only about 20% go to individuals, according to Jay Ritter, a finance professor at the University of Florida.
That means most people must settle for buying new shares during their first few days of trading��rom the bigger investors who are selling. This scenario proved disastrous for investors who bought hot Internet companies near the end of the dot-com boom, just before they crashed.
Most IPOs, in fact, fail to pan out for small investors. Excluding the first day of trading, the average IPO underperforms similarly sized companies by 3.4 percentage points a year during its first five years of trading, according to Prof. Ritter’s data.
The IPO has a mixed impact on other real-estate related companies.�Realogy (RLGY) has fallen 0.2% to $43.62, while Vector Group (VGR), wh
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