RE: What if.............. I don't know anything about Donner but consider this before making your investment decision:
- Can Donnycreek drill 3 more successfull wells in the Kakwa region over the next 12 months?
- If this happens do you believe Tinmann's anaysis and valuation of the company (approx $100 million)?
- do you think investors and the market will recognize the true value of Donnycreek with 3-4 successfull & producing wells?
If you say yes to these questions (and assume no further share dilution) this is at least a $4 stock...that's about 3X the current stock price within the next 12 months...a takeover would just realize the value quicker! Once the 1st well is tied in over the next few months I see very little downside to the current share price regardless of commodity prices and results of the second well. In my opinion this company still offers a great risk - reward opportunity even with the recent share price appreciation.
Personally, I am in this for the long hall and will stick around for the results of the second, third and maybe 4th well or until the potential market cap is realized ($4/share). Spikes in share price and volume is just short term noise if you believe in the potential value here. All this to say...I think it would be a mistake to sell your shares at this point. Then again...never bad idea to take profit when you have a chance.
Footlong