Once again the EKA AUT relationship has favoured a sell of AUT to buy EKA. I was happy to take up the .225 EKA at open and sell AUT at .96 to cover the cost. Both have fallen but EKA has had the bigger fall. I bas my ratio at 4.2 to 1 and will trade where it gets outside that ratio.
I believe that EKA has a better chance of becoming cash flow positive before AUT and will have funds available to prospect the new lease areas where it has 100% interest. My sentiment is short term buy based on the fact that it has fallen too far too quick for no good reason.
EKA Price at posting:
23.0¢ Sentiment: ST Buy Disclosure: Held
