PRE stopped buying completely
Every day we drop a few pennies, just by watching the trading pattern, there is someone or group of people that want out (either tax loss or just don't want to wait), they put their sell orders in small chunks, then when a buyer comes in, they sell into the bid. then at the end of the day, they pull their bids. I suspect it's a broker trying to unload for a large client and not successful because there are no large buyers out there.
PRE completely stopped their buying since Sept 4, not sure why they bid it up to $1.4 two months ago, and then completely stopped, sending us into a free fall. This pattern is not good as selling leads to more panic sellers. Don't even know when to start doubling down because there doesn't seem to be any base formation. Cannot even take a tax loss now because if I sell it will cause it to tank more.
So I wait, kicking myself for catching a falling knife when I should have known better.
The big question that I hope someone will answer one day is what is PRE's strategy? Letting it fall like that will make it very difficult to do a private placement with institutions later - we will be massively diluting at these prices. Unless PRE plans to be the only taker, then lower she goes the better for PRE.
Our only hope is a joint venture with a large player. Tullow made a good deal with Hyperdynamics, $27 M cash for prior expenses, and funds up to $100M for the next well. Will we be able to get a similar deal?