Manitok Energy Inc MKRYF

RE:RE:RE:RE:Mid March

[rodeo2]

At this stage you just have no choice but to hold. As long as you dont have any pressure to sell you will be OK. The price of oil will be back in the $80 to $90/bbl range by this time next year if not higher. Right now we are heading into the extreme fear stage. When people start freaking out it will signal a bottom. I dont think we are there quite yet. We will probably test $45/bbl at some point. The main problem I see for MEI is their debt, well production declines, their Entice financial commitments and soon they will be doing their reserve evaluations and like all oil companies and the price of oil used by the reserve evaluators in those reports are going to really come as a shock to all investors. The value everyone saw at $100/ bbl is going to be cut in half. The price of oil for those reports will be pegged closer to where it is today. By report time after the First quarter the real pummeling of the stock price will be made. This will be the bottom for many companies. I think this is why you are not seeing any insider buying. Most stocks will recover before the end of the Fourth quarter. To make things worse for MEI the analysts will probably (fair or not) cut them down. Its how it always works withy juniour companies out of favour. It will come down to managements ability to keep their main financial house backers from turning on them and trying to roll them into another favoured venture ie: trigger strategic alternatives.