elk roll call, page-7

DJ and other Elkateers

I am still in, in quite a big way, but have sold down about one third my holdings since about 40cents.

Sticking at this for now, having bought in to other US oilies. I needed to diversify a bit.

The key is obviously going to be the price of oil - now about US$70; still a viable price for ELK I think.

My view is that OPEC will cut back supplies when they meet, which will be soon, and that this combined with naturally falling world production ( canterell etc) will bring about slightly higher prices in the short term say $80 - 90/bbl.

What we really need to see are stats for the actual world consumption and Demand reduction for a better view.

I still believe that oil stocks represent the best hedge aginst future uncertainty and almost, no matter what, will prove to be the best investment against turmoil over a 6 month time frame and longer.

So ELK could be well up in a few months if CO2 gets going and OPEC bites the bullet. I still think a $1 or more is possible in this scenario.

My computer tells me ELK is still my best investment at present, only one near rival; multiples ahead of everything else.

So chins up; I've still got the option open on the Bahamas.

Would be interested to hear thought of others.