RE:SpudToucan1234 wrote: As project continues (after10 years). Share price continues to plummet
Its really not that suprising. Quiet normal. Traders looking for the sure thing knew that the hype would shoot this up, and are now selling reaping the profits they made over the last few months. Personally I did the same.
To many questions unanswered for this kind of person to stay any longer imo. The biggest, where is the money coming from and what deal was made to get the well drilled. Even if you can look past this though, as a new investors coming in, I need to be able to put a value on this, and without any idea how big the target is, it is impossible to do.
Are they targeting 100 mbbl, 300 mbbl, 500mbbl? From my basic calcualtions, on a successfull drill at 100 mbbl that equals a share price of about $1.15. If it is 300 mbbl then it would be $3.41. If it is 500 mbbl $5.70.
This is where their PR department really falls down. If they have a low volume high COS target, there is a lot of value in that as on success, raising funds for another drill will be easy. But if the target is only 100mbbl, I sure would not want to get in at these levels. At 300 mbbl, I think it is trading within the right range pre results, it may touch $2.50 or drop to 1.80. If it is 500 mbbl, then there is room to grow before results.
I think this is how a lot of outside new investors will see this. I understand the longs sticking around after all these years to finally reap the rewards. I also understand why new investors are not flocking to CGX with so many unanswered questions.