Showing great strength right nowGranted the dip to $1.89, but at this point EE seems to be holding up very well.
Look at the risk vs. reward here. This is a potential 250 - 300 million market cap company this year based on production. $4 is a reasonable target.
Anything under $2.50 is a steal because you're getting the upside production potential for free. Anything under the private placement price is a no brainer.
What's the downside risk from here? Minimal. The stock is cheap as it is, they have some cash to spend, good production growth. A classic buying opportunity, when downside risk is next to nothing and upside potential is more than a double.
I was taking profit on Ithaca close to $3 and I've now been buying EE as it's been falling. Will continue to buy just because there's so little downside risk.
We're heading into the summer and oil's already high, summer's just going to make it go even higher without a doubt. You can bet on it.