RE: RE: So Westport dropped...(Continued)
if you look at a candle chart you will see there was a gap up around the $9.50 mark. (Which, are usually revisited to fill the gap... however this time frame has been a little long. ) Personally, I think that was because of the institutions willing to show "good faith" , (and thusly being able to take part in this financing.) that drove the stock well above what it normally would have traded at. Personally, I don't think the stock deserved to rise after the lack luster Q2 report, so the hit the stock is taking today is a freebie.
The history of WPT's financial offerings has been that the stock generally drops another 20% after they are completed, and the way I read the chart, there is a resistance level around the 7-8 dollar range.
IMHO, the stock will re-visit the $8.00 range shortly, because (1) The WPT management would not have done this financing if they could forsee a higher offering point within the next 6 months. (2) "No positive influence in the next 6 months" means that the Nat Gas Act isn't expected to be shown the light of day until March/April. (Boone Pickens has already alluded to this) (3) The Q3 numbers cannot be expected to be any better then the Q2 numbers (Not to a great degree anyway (see point #(1))
I hate to say it, but I think we will see a considerable dip right after the Copenhagen meetings prove there is nothing to look forward to but more rhetoric and the introduction (or continuation) of the Nat Gas Act bills in the House and Senate.
However, it's not as though the long term shareholders haven't suffered through these dramatic drops and disappointments before... but, the way I see it, "here we go again... "