re: information needed IanIf the AFR article about British Gas...

re: information needed Ian

If the AFR article about British Gas is true, and a deal in the terms you have hypothesised occurs, I dont think I would see KAR as "overvalued".

There are obviously major and significant targets to drill to attract the likes of British Gas, and they must be of quality also. Lets see more of the details I say.

There have been many juniors like HDR, NXS etc whom have reached these sorts of market capitalisations in advance of drilling, it is not out of the ordinary. HDR's market cap was backed by WPL's entry with a major exploration commitment. KAR may not be that different if they announce an excellent multi well farm-in deal with BG.

It is the conundrum of spec oilers, how do you value the suckers, when you dont know the asset even exists until you drill it. But history says the better the target, the more value the market gives in advance, so really there is no right or wrong, nor under or over valued.

How can you say this is overvalued? Are you saying there is there is no gas in the ground??? Well of course you dont know. In advance of drilling it is the speculative following that says what the value is. When the drill bit hits the target it is a different matter.

In the case of KAR there is a very strong speculative element, a market following. History has it that these types of stocks are the best for "pre-drill" traders to follow.

I dont hold KAR but when drilling comes around will consider it, even at current prices.

I think this stock will go higher yet, but from a tading perspective getting the entry and exit is the key.

acturtle