I know some HC'ites would like to see China go away but I think it'll be one of our longer-life more valuable assets and that the sp will start to reflect that within six months. I expect plenty of volatility in the sp over the next two months that'll give the brave amongst us a great buying opportunity. The two big negatives that'll impact the sp will be: 1)The 2004 financial result to be released at the end of Feb - the accelerated DD&A expense on West Cameron & Vermilion will surprise the market. 2)The possible deletion of PSA from the S&P300 index when the reweightings are announced in March - most margin lenders only cover stocks that are in an S&P index so PSA might no longer be considered an approved security by these lenders and those investors who only have PSA as their only security will be forced to repay their total debt.There have been a lot of stocks increase in price since the last S&P reweighting in Sep whereas PSA has gone nowhere and its market cap is now down to $130mil - there are now lots of stocks that have market caps of over $200mil that are not in the S&P300 such as AVM. It'll all be a matter of timing but hopefully the positive drilling results from Main Pass drilling will mitigate the effects of these margin lenders being forced to sell out - we already know that Macq Bank is not accepting further PSA script for lending as it has a full book on this stock. The above two points are complete supposition by me and one or both might not eventuate but it's food for thought.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
