entry price???, page-14

re: entry price... for b2 Hi B2. I always pay attention to what you have to say and not just because we seem to be on the same wave length on a lot of stocks even if we come at them from different directions. But I have some differences with you on your recent PSA post. They are:

Re geos moving to Novus. You may well be right but they aren't management. PSA is run by the same team it always was with Terence Fern in the driving seat and holding a big slice of stock. The geos PSA has on its payroll now must be pretty good if they can identify the potential at West Cameron, successfully drill the prospects and have them producing all in nine months. That's pretty smart work in my book. I know they are preparing bids for the coming April MMS auctions so lets hope they can be as successful.

The reserves are small I will grant you that but hugely profitable at current prices. The company once told me they were initially targetting "scraps" passed over by the majors. The thing is PSA, having worked with many of the majors, including somewhat less happily with Apache, know where those scraps are. So if West Cameron are just scraps bring on some more just like them. There are apparently two to three additional scraps at West Cameron yet to be proved up for drilling but about the same size as the currently producing wells. ie 6-10 bcf. So another 25 bcf could be added to West Cameron in time.

I think the gas prices are less influenced by Iraq and more by the particularly cold northern winter. But whatever the reason I agree with you there is the potential for them to soften in coming months.

I too hold CUE, bucket loads of them,m and see a similarity between PSA and CUE in that both have reserves coming into production. But Oyong development is a long way off so we may have to wait a bit longer for that rerating which I think is inevitable. In the short term, both CUE and, I suspect, PSA will be drilling again in Q2 which will be good for the share price. And for PSA, regardless of how they got it, that interest in China and the relationship with ROC could be very rewarding indeed.

I think anyone holding PSA now is going to be handsomely rewarded in six to twelve months time and the longer term outlook is even better. I think the way to play PSA is to have a basic holding for the longer term and some to trade the inevitable ups and downs as the stocks moves higher.

The reason why so many of us don't make the profits we should is because we don't cut our losses soon enough and take our profits too early. Only human nature I suppose but to be really successful in this game we have to discipline ourselves to follow stict stop losses and to let the profits run. JMHO. JBC