re: a look into the future.....no future (?)
PSA has certainly done well for me, it's been a learning experience in many ways. Sushi, I agree with much of what you say, but think it an overly pessimistic interpretation of events to say that the market believes there is no future in the company.
That aside, I just wanted to post some technical comments, because the fundamentals are always well covered by the good posters here.
When PSA fell through $1.40 after the China drilling, I said at the time this was bad news purely from a charting perspective (fibonnaci mostly), and the stock would probably fall to around 85-87 cents. Furthermore, any bounce in the price would be an opportunity to exit the stock for short-medium term investors. Since then, the stock has bounced perfectly and very predictably according to the chart. It reached the $1.40 level again before capitulating, and again recently moved to the $1.20 level where it failed again. Today the price is sitting on the only remaining support at $1.04-.05. The important thing I wanted to say is that if PSA breaks $1.04, then 87cents is the next support level. I am absolutely certain this will happen if $1.04 fails.
In my opinion PSA will consolidate here, and this will probably be a good opportunity to accumulate in anticipation of Main Pass and East Vermillion later in the year. Of course if the market puts a value of less than 87 cents, then it's time for a complete reassessment of where this company's price is headed.
I understand that many people don't believe in the logic of charting, and this post is not for them. Indeed it must be infuriating for the larger holders of the stock (like Jocam) when someone tells you the price may fall further, and they have such a big holding that any attempt to sell a large block will force the price down sharply.
Nevertheless, I believe these forums are one of the only edges/advantages the retail investor has over the institutions, and that's why I offer these T/A comments for anyone who is interested.
Cheers,
Christian
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
