Markets are irrational. There is no rationality for the performance of EKA. Seems it just plays follow the leader. The effects are maginified by the numbers I hold. I continue to search for reasons to justify the market's verdict.
Oil prices continue to rise on the uncertainty of supply. There is no uncertainty of the supply or the market with production being in the country faced with supply problems and its need for local production. So the law of supply and demand should mean an increase in the SP, not a fall.
Production seems to be on the increase so there should be no doubts about income. Income should be more than sufficient to cover the cost of development of existing leases. Income should be increasing week by week from here on in.
Management seems sound. They seem to be making the right decisions.
If you calculate for the potential SP by any means, whether you use potential income versus price or by its relative price to others in the field it seems that EKA drags behind. Rising oil prices, rising production plus increasing lease areas should mean rising SPs.
Is there something I cant see or are we due/overdue for an SP boost?.
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