TSXV:WEE.H - Post by User
Post by
BenVest99on Aug 23, 2010 11:14pm
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Post# 17376814
Greed
Greedthis is one of the key ingredients missing in the markets right now and one of the reasons WEE is down so much.
The million $ question is when will it come back, and it does, will wee be in a position to profit from it.
I browsed quickly over the 2007 WEE news releases and they look pretty good, meaning that it looks like they were just about to hit it big at that time. Brett was has positive back then as he was in late 2009 - early 2010 in his news releases. However, the share price never took off in 2007 as it traded between $1-$1.50 before dipping at the end of the year before taking off in 2008.
WEE is now in a more advanced development stage, but it is still not making a profit. When it traded at $2.50 - $3.00, it was on expectations - not on fundamentals because the earnings didn't justify it. The problem is that they didn't deliver on these expectations, worst they had to solve a problem with the tool which brought some more uncertainty in the market.
The fundamentals are still good, they are putting in production in number of tools with their first commercial implementation. (Knowing that CPG his also on board would be a great a boost if it is the case.) However, others are not getting on board at the pace that was expected when WEE was trading above $2.50.
The question is what will be the catalyst that will make WEE go back up from here? Certainly real sales $$$$, earnings, market acceptance, etc. Or perhaps only greed when it will come back to the markets. The run started last year when they announced that one of the top 5 oil producers had installed ONE Powerwave tool! That's all it took to start the run! Since then we got Chevron and other deals plus over 50 tools installed with Cenovous and we are trading lower than after the announcement that BP had installed ONE tool.
GLTA