Lucero Energy Corp Com V.PSH

RE: Selloff of PSH

[metzgf]

The thing to keep in mind is that the value of PSH is not determined by the state of the overall market.  There is an indirect connection.  When the market drops suddenly, many investors are caught short due to margin buying and they must liquidate some of there holdings quickly to cover their margin contracts.  This means they will be forced to sell holdings in companies like PSH.  The value of companies like PSH is a factor of earnings and the potential for earnings.  PSH, so far, has shown little in the way of earnings, but we are all hoping for the potential earnings which could still come at any time.  That's not to say that some insider information may have leaked out and caused a number of PSH shareholder to dump their shares.  Whether this is the case or not will soon become evident.  If bad news about PSH has leaked out, it will soon be followed up with a PR.  I would hope that ,if this is not the case, PSH management would be smart enough to issue a PR about the present situation surrounding PSH.  It has been about 60 days since PSH reached total depth on #8.  It would seem that this would have given them ample time to perform the perf and know what the potential output of this well is likely to be.  The fact that they have not chosen to say anything, one way or the other, does not appear to be good news.  However, only time will tell.  PSH shares will rebound quickly if good news comes out.  If it's bad news or no news, the share price will probably continue to go down as investor will continue to dump shares, either out of necessity or because they have finally had enough of this "-play it close to the vest" company.