Grahamc58 was right PSA has taken another belting today and those of us who thought there weren't many daytraders in the stock have been proved wrong. It is interesting to note however that the number of shares traded yesterday when the stock fell from 92 cents to 72 cents was almost exactly the same volume (around 1.7 million shares) as took the stock price up to 92 cents from 83 cents last Friday. What that sugggests to me is that the punters got on and now the punters are getting off. In other words there has not been any serious offloading by investors with a longer term outlook. The action today down 8 cents as I type is on piddling volume and probably is as Graham says traders catching up with end of day data. It is a bit gut wrenching to see so much value wiped off ones portfolio in a few hours but that is what happens at this end of the market and you just have to grin and bear it. The worst thing one could do is panic and bail out on the disappointment of one well, or even two wells if #15 is also a duster, and the liklihood of that is now greater after the failure of #14. In times like these its good to remind oneself that PSA is, as Petzl says, a great cash cow with additional drilling coming up at the end of the year. I wouldn't be surprised if there weren't some new projects announced as well. I know for example that PSA has been talking to Chevron about Vermilion 245 but thus far Chevron is playing hard ball. It would also be great if PSA could announce its half yearly results which should show a significant profit and stop the bloodletting on the trading floor but unlike some of its peers with lesser claims to success PSA is very media shy. Pity. Think I'll go mow the lawn!
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
