My take on Shoal Point EnergyI was curious and decided to check in. Nothing much has changed. The same old pumpers are still around posting furiously of all the great things to come while they off load shares picked up at 2 to 3 cents. If you want to know why this is trading at 7 or 8 cents you have to go back through the older news releases and read about the options granted to directors, consultants and others. You will notice that the strike price is 6, sometimes 7 cents. In other words when the share price reaches that figure they can exercise their options, ie, buy shares. That, in my opinion, accounts for the Increased volume and the rise in share price. They will try and drive the share price as high as possible and at the same time sell when the volume is high. It’s an old game. Options are one way they make their money. The pumpers on this board know the game is on and are hoping to benefit from it. It’s up today. Someone bought 9000 shares at .08 to give the illusion that there is demand. This is classic.
Sure there is oil on the west coast, but no one knows how much. All we have are estimates. To determine the size of the oil reserve and whether it is commercial will take a huge amount of drilling.To date there have been a few exploration wells drilled. All have been abandoned. The majors left the west coast of Newfoundland 20 years ago.
Shoal Point Energy doesn’t have any money and there is no major in the wings waiting to jump in. All a company like Shoal Point can do is obtain enough cash to re-enter a failed well that another company abandoned in an attempt to get it to flow. That’s not much of a game plan and most times does not work but it gives the appearance that something is happening. And of course it’s good for those who have stock options and cheap shares to sell. When the pumpers advise you to buy that this is a ten bagger beware. Beware. Chances are they are busy off loading their shares at the first opportunity. There is a good chance that SHP will announce that they have acquired a property which will drive the share price up. When that happens you can be sure that the holders of those 6 cent options will be selling! No it's not illegal. It's just the way the game works.
The only positive I see is the recent spin off by the NL Government of Nalcor’s oil and gas division into a stand alone company. Remember Nalcor drilled a couple of deep exploration wells a few years back but never released much information on what they found. They have money and perhaps they will decide to go back to the west coast. That may serve as a catalyst.
The pumpers on this board will fire back and say wajac sold all his share awhile back and now he's back bashing SHP. Wharever!
Posters such as Ellen have been on this board for a long time. Newbies should pay attention to her. We have not always agreed but I feel she is honest.
Goodby again.