FLUSHOUT TODAY (FINALLY)....Hello Everyone,
I know that it is painful but any correction has to be severe to flushout the weak hands. Good40, Hhoc, Eoim and Maysteeler23 have succeeded in getting the stock down to these corrected levels.
The stock had rallied from 23 cents to 46 cents or 100% (23 cents). A correction of 70% of this 23 cent gain or, about 14 cents is indeed very bullish and normal pullback in very sharp rallies. This means that a pullback in the 32 cent level from the 46 cent level.
I have seen this numerous times on highflying stocks. Once correction is done, the tendency is for the stock to rally to new highs once again.
This is called the FLUSHOUT period of weak hands and is necessary so that stronger hands accumulate.
NB: I have not sold and I do not trade around the core. This flushout gives me the opportunity to double my position. My target is $ 4 per share in 2011 as we enter the OIL PRODUCTION phase.
The good news is less dilution since warrants will expire worthless. Management (Stan Bharti, billionaire) will advance funds from one company to another, say VST to LFD.
Like they say, there must be blood on the streets before a rally takes hold. I am starting to see blood.
JMHO