no real surprise in another bout of profit taking in the US, at this stage it is hard determine whether it is the start of another down leg or just some profit taking after a stellar run. The volume was tiny overnight and with the easter long weekend coming up, we are not likely to see to much action over coming days.
in terms GM i'm not sure how much relevence a bankruptcy filing would be, the market already expects it and if anything it will save the US taxpayer billions in wasted funding, although it could certainly dent sentiment short term.
for trading today, now doubt GDN will once again feature highly. With another drilling report due out either this morning or tomorrow it has the potential to move significantly once again.
below is a quote from a recent independent experts report on the potential size of the Golden Eagle gas field for GDN, to put it into perspective a mid range case equates to roughly 15% of the entire natural gas discoveries in the US for the entire 2007, which is truely massive for a company the size of GDN.
"Independent Estimate of Golden Eagle Gas field - RPS Energy
An independent audit of the Golden Eagle Project has been performed by RPS Energy Group. RPS is a global market leader in independent oil and gas evaluation. The report indicated that Gas In Place estimates for the Golden Eagle gas field resource (mid-case estimate) could be 118 billion cubic feet (Bcf).
In context, the total amount of new field gas reserves discovered in the US for 2007 was 796 Bcf. Successful conclusion of gas discovery would place the Golden Eagle gas field as one of the most significant onshore gas discoveries in recent years. Hence the potential upside for Golden State with Paradox #2 is qantifiably significant."
for other trading opportunities look for companies beaten down on open for some bounce plays.
