RE: RE: RE: RE: Shorters are going to get caught hI wish all this is that simple. In my opinion, likely no one is short PXM. This stock is literally awash with stock as evidenced by the selldown yesterday. Is all this disappointing, certainly yes, however, is it going to recover any time soon, I am not too sure about that. This has found a new trading range and hopefully this doesn't break down below 0.20 otherwise there will be a new round of sellers. The price of Natural gas is the lid on this. The next variable is cash, will they have enough cash to get this to the pipe and create some cash flow, I don't know the answer but at these small gas volumes, it certainly doesn't look like they can generate enough cash even if they can afford to get to the pipe. Then the next question is, where will they raise capital and how dilutive will that be.
Let's face it, this was a huge hair cut for everyone who got sucked in by believing the price was going to run based on drilling. They need to drill many, many more holes of success and this will take cash and many, many more months if not longer.
I say all this and I still own some stock, who would have thought that this play of all the plays I own, would have lost this much money. To chase more money after lost money is often the worst thing one can do. If I can get back this money, I will certainly be happy but the last thing I would do is loose more on a dream. PXM has very poor IR in place, the information flow was protected so other could sell above 0.40. As I said yesterday, I would love to the list of names that sold above 0.40 in the last 2 weeks, this would tell me a lot about the future of this drill play.