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You Tell Me, Why This Would Be a Good Investment.

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The Lone Liberal Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 09:44 PM
Original message
You Tell Me, Why This Would Be a Good Investment.
Edited on Sat Apr-24-04 09:50 PM by The Lone Liberal
There is a small struggling oil company in Midland, Texas which has a net worth of $382,000. Now, would you invest $1,000,000 for 10 percent of the company. Yes, that is the question, would you give me One Million dollars for Thirty-eight thousand dollars?

Well, one very bright individual by the name of Phillip Uzielli, who happened to be a classmate and good friend of James Baker did just that in 1982. Uzielli invested One Million Dollars for a Thrity-eight thousand dollar share of Arbusto Oil Company. Yes, Arbusto Oil Company headed by one young George W. Bush, whose father had just become Vice-president of the United States of America.

Bush rationalized the high price by saying, There is a lot of romance and a lot of upside in the oil business. It is almost unbelievable and in your face.
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greatauntoftriplets Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 09:46 PM
Response to Original message
1. Ummmm.....
The principal of the company was wired to someone named George Herbert Walker Bush. Who was wired into big shit in DC.

Romance in the oil industry? Did numbnuts think he was J.R. Ewing?

:puke:
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liberalhistorian Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 10:00 PM
Response to Reply #1
2. Unfortunately, that's exactly
who they thought he was. Remember, Dallas was big then and the oil industry was very romanticized by a lot of dumbshit delusional repukes.
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 10:04 PM
Response to Original message
3. based on the limited information you've supplied
i'm sorry to say but it could be entirely legit. i'm sure there's more information, but "net worth" alone does not at all translate into equity value.

there are plenty of negative net worth companies where a 10% share would be worth a fortune.

not that arbusto was ever one of them....
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The Lone Liberal Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 10:22 PM
Response to Reply #3
5. Twenty-six times the market value is kinda high.
The story goes on:

Less than two years later, 1984, Arbusto, which has drilled nothing but dry holes merges with Spectrum 7. Bush and Phillip Uzielli are now on the board of that company. Oil prices, recession and real estate bust is creating ghost towns in Texas.

In 1985, Spectrum 7 lost $1.6 million. Altogether it owes more than $3 million. Uzielli puts it this way, "We lost a lot of money. Things were terrible. Just dreadful."

As you say, sometimes tax write offs are worth something, or potential, or....maybe an in with the VP of the United States.
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cornfedyank Donating Member (642 posts) Send PM | Profile | Ignore Sat Apr-24-04 10:22 PM
Response to Reply #3
6. yah , "maybe legit".... wheeler dealer's two favorite words
Edited on Sat Apr-24-04 10:24 PM by cornfedyank
tell me a boat full of lawyers just sank.----robert cray

on edit: oops, i forgot "tax break".
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seabeyond Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 10:18 PM
Response to Original message
4. he has done so much now
that all his criminal activity and poor choice way back then almost doesnt matter any more.

really is something
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the Kelly Gang Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-24-04 11:15 PM
Response to Original message
7. how about investing $75B ,700 US/30,000 Iraqi lives for oil ?
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walmartsucks Donating Member (149 posts) Send PM | Profile | Ignore Sat Apr-24-04 11:26 PM
Response to Original message
8. It's not uncommon
To pay 3 times annual revenues for an established company. Do you think it would be a good idea to buy stock in a company called Pets.com? What about Stamps.com? Apparently a lot of people thought so in the late 1990's. They lost a ton of money too.
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