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Canacol Energy Ltd T.CNE

Alternate Symbol(s):  CNNEF

Canacol Energy Ltd. is a Canada-based natural gas exploration and production company with operations focused on Colombia. The Company’s production primarily consists of natural gas from the Esperanza, VIM-5 and VIM-21 blocks located in the Lower Magdalena Valley basin in Colombia. The Company’s production also included crude oil from its Rancho Hermoso block in Colombia (Colombia oil). It supplies approximately 17% of the country’s gas needs and more than 50% of the Caribbean Coast’s gas demand. Its gas fields which produce from the Cienaga de Oro and Porquero proven reservoirs are connected to its central Jobo gas processing and treatment facility through more than 169 kilometers of flow lines, mainly flexible steel flow lines. It operates over 1.5 million net acres in 14 exploration and production contracts in Colombia, with 11 of these contracts focused on exploring for and developing natural gas. These blocks are all located in the Lower & Middle Magdalena Basins of Colombia.


TSX:CNE - Post by User

Bullboard Posts
Post by captwadeon Dec 18, 2014 1:41am
302 Views
Post# 23243083

RE:RE:RE: This Will Bottom...

RE:RE:RE: This Will Bottom...I have a different slant on that thought.  As KeaKam44 mentioned we all have an opinion and, for what it's worth, here's mine.

I would offer that we have seen the bottom and that it was the $1.40 it hit on Tuesday morning, and that by the end of January (29 trading days from now) we will see $3.00. plus.  To put it another way I think there's a 60% gain to be had by Jan. 30. (from today's closing)  That is almost exactly what happened 3 years ago and I think this year's situation is even better than the conditions that existed then.

This stock was technically oversold at $2.50.  It is even more oversold today in the $2.00 range and I would suggest that when it got below $1.50 it was ridiculously oversold. As I suggested previously it was absolutely pummeled. When I was trying to evaluate this thing a week ago I came up with 6 factors that would all put downward pressure on this stock. 

All that happened Tues. was that the bottom feeders moved in closely followed by the day traders and together their buying pressure overcame the pressure of the tax loss selllers and up she went. The day traders were no small part of it as their participation was huge these last two days. Both will be back tomorrow and we could have two more positive days this week.

There's no reason to think that tax loss selling has stopped either. This third week in Dec. is historically the peak volume in tax loss selling. Because the stock has popped $.50 or so is no reason to not sell shares you paid up to $8.77 so you can book your loss. So, I fthink this pop has occurred even with tax loss selling continuing. The stock is still very oversold and wants to go higher.

It is too early to assume that some of these buyers are people that sold for tax loss reasons and now want back in. They would have to have been out before Nov.17. and I doubt they would have sold that early, so that pressure is yet to come. Typically returning past sellers start in Jan. 1 and are back in by Jan. 30., so that pressure will be constant during January.

Helping to hold the stock up right now is anticipation of the promised release on capex. I don't think I.m alone either in expecting some drill and test results to be included in that release. Capex plans always seem to be received positivly by shareholders.

I am no Warren Buffet, but by way of disclosure, it's been a lot of years since I have put this much on one pony.  GLTA. 


Bullboard Posts