BLOODBATH...PENDING HUGH RALLYHello Everyone,
What a terrific correction. We have erased 17 points out of 23 point rally (from 23 cents to 46 cents back to 29 cents). This is a retracement of 74% of the rally that had occurred.
During the internet bubble, stocks would correct at a maximum 75% before rallying to new highs in short order.
The selloff has removed the weak hands, the penny flippers, the stoploss crowd, the non-believers, the impatience, the ones with no tolerance for risk, the non-investors.
The chart position shows a very strong FLAG POSITION, the most bullish of all positions.
I expect us to ramp up to my $ 4 per share target in 2011. I expect a successful drilling program in June 2010 and, the annoucement of high pressure giving rise to 18,000 barrels of 41 API oil per day. I expect us to be a significant oil producer in Q4-2011. I expect the July 75 cents warrants to expire worthless, hence no dilution. I expect LFD will work out a loan agreement for the 1st hole, something in the range of $ 5 million which they can easily borrow from a related company Stentson (SSN.V) for a 3 month period until they confirm oil. I expect PSC contracts to be approved. I expect a robust stock where Kurds territory is the place to be in 2nd half of 2011.
Overall I am extremely happy of this latest selloff as it only reinforces my convinction that I will not sell, that I truly have a high risk to tolerance and that I will see this through the multiple dollar phase.
Nothing comes easy, my decision was made a long time ago. I will RETIRE with this stock as it soars to levels you could never have imagined.
I find that the best way to see comfort for investors is to do other things while the market settles down, just a few that may be of interest to you:
Turn off your computer and then:
a) Go away for the weekend with friends
b) Take a vacation
c) Do some exercise
d) Go dancing
e) Go watch a sports event
f) Have sex
g) Do spiritual reading
h) Practice yoga and breathening exercises
i) Concentrate on other things besides the silly changes in stock prices.
JMHO