RE: Down 45% ? Suddenly?Why,
because they announced that the first well was wet, and that they have recovered zero hygrocarbons from the second (although they have another zone to test)....so so far, 0/2. Spend a couple million bucks drilling and completing wells, and no production... are you surprised that the stock is dropping?
The company has no significant production, so no revenue. They will have to borrow more cash to keep financing any acquisitions or capital spending. It'll get driven down for another share financing (if anyone wants to lend them money). In other words, it's f'd for a while unless the third well hits a nice zone.