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Old 04-14-2014, 04:35 PM   Nav to Top  #1
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Default HFI.V - Hermes Financial Inc.

HFI.V - $0.01 (Oil and gas production)
Shares Out: 24.4 Million
Insider Holdings: 53.5% of O/S as per Sedi.ca. Most recent buying in October 2013. Recently the CEO of Hermes purchased over 6 million shares from the parent company Hermes Energy Corp.

This stock has not had any volume for several months, but I believe this is due to it's name and lack of website. Hermes is not a financial company bur rather a producing oil play that recently had it's first quarter of positive growth. Considering the assets and production, this stock should be trading at a much higher price. Most recent financial and MD&A highlights are listed below. In December the AGM was held and there was NO mention of a rollback. Hermes has recently gone from cashflow negative to positive with a decent Q3. Year end will be out in April.

Assets:
Cash: $77,281
Accounts Receivable:$91,155
Prepaid Expenses: $21,093
Property & Equipment: $807,876

Liabilities:
Accounts Payable: $419,875
Due to directors: $15,000
Decommissioning Liability: $1,156,689

Q1 2013: Loss of $111,147
Q2 2013: Loss of $63,153
Q3 2013: Gain of $109,003 ($0.005c EPS)

2012 51-101 Reserves Proved + Provable
Light oil : 12,000 Mbbl
Heavy oil : 46,000 Mbbl
Nat gas: 27,000 Mboe

Our Business
Hermes’ principal business is the development, exploration and production of oil and gas located in Alberta,Canada. Hermes operates its properties in Bellshill Lake and Valhalla and Sullivan Lake area is nonoperated.These oil and gas properties were acquired on December 18, 2009 by the Corporation as its qualifying transaction.

Bellshill Lake
The Company presently derives most of its production revenue from Bellshill Lake which is currently producing approximately 19 boepd from 8 wells. There has been insignificant change in production from the prior year and from the previous quarter.

Valhalla
Valhalla is currently shut-in. There has been insignificant change in production from the prior year and fromthe previous quarter.


Sullivan Lake

Sullivan Lake is currently producing approximately 2 boepd from 3 gas wells. The other 2 gas wells are shutin. There has been insignificant change in production from the prior year and from the previous quarter.


Outlook
Hermes continues to be engaged in reviewing potential asset acquisitions in Western Canada. Several candidates and proposals are currently being evaluated. No assurance can be given at this time that these discussions will lead to a closing.


LEVEL 2 QUOTE

Market Maker Shares Bid Price Ask Price Shares Market Maker
12,000 0.015 0.020 844,000
2,396,000 0.010 0.025 5,000
881,000 0.005 0.040 5,000
-- -- -- 0.080 350,000
-- -- -- 0.100 300,000
-- -- -- 0.150 200,000
-- -- -- 0.250 120,000



As of 11:59pm ET April 6th, 2014Filing
DateTransaction
DateInsider NameOwnership
TypeSecuritiesNature of transaction# or value acquired or disposed o
fPriceApr 4/14Apr 1/14Yee, Christopher fDirect OwnershipCommon Shares11 - Acquisition carried out privately6,131,720$0.005
Apr 4/14Apr 1/14Hermes Energy Corp.Direct OwnershipCommon Shares11 - Disposition carried out privately-6,131,720
Nov 6/13Nov 5/13Yee, Christopher fDirect OwnershipCommon Shares10 - Acquisition in the public market5,000$0.005
Oct 17/13Oct 17/13Yee, Christopher fDirect OwnershipCommon Shares10 - Acquisition in the public market77,000$0.005
Oct 9/13Oct 9/13Yee, Christopher fDirect OwnershipCommon Shares10 - Acquisition in the public market13,000$0.005
Oct 8/13Oct 8/13Yee, Christopher fDirect OwnershipCommon Shares10 - Acquisition in the public market5,000$0.005
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Old 04-16-2014, 11:26 AM   Nav to Top  #2
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Looks like a flipper at 2c gave up and sold down. Now only 629k left at 2c. Level 2 below:

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
2,196,000 0.010 0.020 629,000
1,055,000 0.005 0.025 5,000
-- -- -- 0.040 5,000
-- -- -- 0.080 350,000
-- -- -- 0.100 300,000
-- -- -- 0.150 200,000
-- -- -- 0.250 120,000
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Old 04-16-2014, 01:22 PM   Nav to Top  #3
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PI unloading today, the sell orders at 2c dropped even more. They have been selling since mid March when the volume started. Not an insider so doesn't matter. Now we have flippers at 1.5c but once that goes the 2c wall will be easier to chew through. Level 2 & 1 month house positions:

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
1,235,000 0.010 0.015 482,000
2,055,000 0.005 0.020 329,000
-- -- -- 0.025 5,000
-- -- -- 0.040 5,000
-- -- -- 0.080 350,000
-- -- -- 0.100 300,000
-- -- -- 0.150 200,000
-- -- -- 0.250 120,000

ouse Positions for C:HFI from 20140316 to 20140416
House Bought $Val Ave Sold $Val Ave Net $Net
124 Questrade 1,605,000 17,285 0.011 66,000 990 0.015 1,539,000 -16,295
2 RBC 1,150,000 11,500 0.01 0 1,150,000 -11,500
89 Raymond James 300,000 4,550 0.015 0 300,000 -4,550
9 BMO Nesbitt 256,000 2,710 0.011 10,000 150 0.015 246,000 -2,560
85 Scotia 765,000 8,625 0.011 600,000 7,420 0.012 165,000 -1,205
28 BBS 200,000 2,000 0.01 120,000 1,800 0.015 80,000 -200
80 National Bank 15,000 225 0.015 0 15,000 -225
7 TD Sec 97,000 735 0.008 377,000 4,585 0.012 -280,000 3,850
1 Anonymous 300,000 3,000 0.01 1,229,000 12,825 0.01 -929,000 9,825
59 PI 0 2,286,000 22,860 0.01 -2,286,000 22,860
TOTAL 4,688,000 50,630 0.011 4,688,000 50,630 0.011 0 0
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Old 04-16-2014, 03:50 PM   Nav to Top  #4
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LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
6,000 0.025 0.035 100,000
19,000 0.020 0.040 30,000
118,000 0.015 0.080 350,000
1,381,000 0.010 0.100 300,000
2,055,000 0.005 0.150 200,000
-- -- -- 0.250 120,000
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Old 04-17-2014, 10:11 AM   Nav to Top  #5
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Because HFI is potentially the smallest profitable market cap company, we have a wide things to look forward to because the earnings in a couple weeks. Here is a list below:

- Profitable Revenue(This is obvious and very likely as operations from October to December wouldn't of changed.

- 51-101 Reserve update. Since the wells were all chemically treated over Q1/Q2 and production potentially doubled, the reserves should all increase. Please see my first due diligence for numbers as we have P + P light oil, heavy oil and natural gas

- New project or acquisition. This was stated in the last MD&A and HFI being undiluted and profitable, they can easily acquire something at this stage in the game for cash/shares.

The CEO didn't pickup 25% of the O/S a couple weeks ago for nothing.

Forgot to mention a comparison play that I found the other day to HFI. Have a look at SPK to get an idea of where we could actually go. SPK has roughly the same sized float and was trading at half a cent a month ago, now over 10c.

Well what got it there is an acquisiton for 11 wells, even though they had to raise money and had no assets. HFI is way ahead of this company in that we already have 11 wells and are producing at a profit. So if you can justify in your mind that SPK is a good deal, then HFI is pretty much a steal at these prices.

Last edited by JonnyR512; 04-17-2014 at 10:22 AM.. Reason: added info
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Old 04-17-2014, 03:13 PM   Nav to Top  #6
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Level 2
Orders/Shares Price Price Shares/Orders
1 / 20000 0.025 0.03 89000 / 2
2 / 20000 0.02 0.035 86000 / 3
3 / 690000 0.015 0.05 80000 / 0
4 / 345000 0.01 0.08 350000 / 0
9 / 800000 0.005 0.1 300000 / 0
-- / -- -- 0.15 200000 / 0
-- / -- -- 0.25 120000 / 1
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Old 04-22-2014, 10:10 AM   Nav to Top  #7
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Level 2
Orders/Shares Price Price Shares/Orders
1 / 30000 0.02 0.025 2000 / 1
4 / 615000 0.015 0.03 15000 / 1
5 / 365000 0.01 0.035 61000 / 2
8 / 783000 0.005 0.05 80000 / 1
-- / -- -- 0.065 40000 / 1
-- / -- -- 0.08 350000 / 1
-- / -- -- 0.1 300000 / 1
-- / -- -- 0.15 200000 / 1
-- / -- -- 0.25 120000 / 1
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Old 04-22-2014, 02:20 PM   Nav to Top  #8
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Level 2
Orders/Shares Price Price Shares/Orders
3 / 163000 0.025 0.035 47000 / 1
3 / 475000 0.02 0.045 4000 / 1
4 / 615000 0.015 0.05 92000 / 2
4 / 315000 0.01 0.06 100000 / 0
8 / 783000 0.005 0.065 40000 / 0
-- / -- -- 0.07 100000 / 0
-- / -- -- 0.08 350000 / 1
-- / -- -- 0.09 100000 / 1
-- / -- -- 0.1 300000 / 1
-- / -- -- 0.15 200000 / 1


We hit a 52 week high today and then got poked back down but volume has been good.
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Old 04-23-2014, 11:24 AM   Nav to Top  #9
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big sell today. When I went to take a look at house positions, it was just someone from Scotia flipping a large chunk of of shares that was purchased March 17th at a penny. Bad idea with year end coming out. HFI isn't a stock that changes much in terms of books, which is why I think a repeat profit is likely. As well, it's past lack of volume tells me that there will be no news leak potential for the stock. I also went back to see what house the CEO buys from and it's TD, not Scotia. Level 2 below:

Level 2
Orders/Shares Price Price Shares/Orders
2 / 115000 0.02 0.025 225000 / 5
11 / 1462000 0.015 0.03 71000 / 2
7 / 845000 0.01 0.035 40000 / 2
11 / 2233000 0.005 0.04 20000 / 1
-- / -- -- 0.05 72000 / 0
-- / -- -- 0.055 4000 / 0
-- / -- -- 0.065 40000 / 0
-- / -- -- 0.08 350000 / 0
-- / -- -- 0.1 300000 / 0
-- / -- -- 0.15 200000 / 0

Last edited by JonnyR512; 04-23-2014 at 11:25 AM.. Reason: typo
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Old 04-23-2014, 06:02 PM   Nav to Top  #10
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Shares Issued 24,400,000
Close 2014-04-22 C$ 0.03
Recent Sedar Documents
View Original Document

Hermes Financial directors Burroughs, Koyich resign
2014-04-23 14:50 MT - News Release

Mr. Christopher Yee reports
HERMES FINANCIAL ANNOUNCES DIRECTOR'S RESIGNATION
Hermes Financial Inc.'s David Burroughs and Dan Koyich have resigned as an officer and director of the company effective immediately.
© 2014 Canjex Publishing Ltd. All rights reserved.



Something weird happened. Wonder why both directors resigned effective immediately. One director was actually brought on in July. I have a feeling it has something to do with the CEO getting dirt cheap shares from the parent company for $0.005 and the other guys didn't get a piece of the action. Problem now is the stock will halt until another director is found, as TSXV rules state that there must be at least 3. I hope it doesn't drag on past next weeks year end results.
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