From what we have seen oil stocks have fallen 30-50% in the market turmoil, even the big popa stocks have fallen heavy (STO, WPL etc)... Oil stocks that have dissapointed the market have fallen further again... stocks like NWE, TEX, PSA, inparticular FAR (I watch)... and many others... markets have savaged poor oil stocks to bits... these sorts of stocks have fallen by as much as 80%, where some oilers have only fallen 30%... (a few)... So fundamentals sill play a minor role in this market, but yes I tend to agree... fundamentals and tech analysis play no part in performing oil stocks... If your holding the right oil stocks, you will make your money back within one year I reckon...
Austin has fundamentaly changed because the market no longer believes that it will be cashflow positive... with 120m shares at 10c... means a market cap of around 12m (b4 placement)... This to me suggests that the market is not even factoring in the slightest chance of CF positive...
even if Austin could get plant facilities running at max, 7 million a year revenues would be gobbled up no problem... 7 million is nothing... ELK is one of a very select group of cashflow positive companies... in terms of what AKK were into AOK looks so much better... Im not tipping that stock... but check it out for comparison to Austin... more potential there for the 'risk taker'...
AKK Price at posting:
9.2¢ Sentiment: None Disclosure: Not Held
