After buying in while LKO was still the flea bitten mongrel that nobody wanted, I have sold LKO late this week. While I fully understand many traders wishing to hang tight until results are known, I am a conservative player (hence the BESBS philosophy) and have moved for the following reasons:
a. Wombat 2 always had a high probability of successful initial flow rates as we already knew that gas existed! This news caused a spike of approx. .006c when it occurred (moving the SP from .008c to .014c). Easy money...
Now the following exists IMHO:
b. Wombat 3 has gas and oil (so should also spike the SP as Wombat 2's initial flow rates did.) However, the presence of oil might well mean that extra/new equipment is required to flow test this. If so, it would take a few weeks (minimum) to get it to the site. This means no results for a few weeks. No big deal for some but some traders won't want to hang around for this timeframe. Depends upon your perspective...
c. Seaspray (another play that should spike the SP on initial flow rates) will be tested using the same equipment used for Wombat 2. As I suspect that this will only commence after Wombat 2 (as they shall use the same equipment), LKO management should have the extended flow rates for Wombat 2 PRIOR to Seaspray or Wombat 3 initial flow rates.
Put simply, if my summary is correct (and time will tell but I am interested that no updates on Wombat 3 have been forthcoming from LKO management this week), the next result released shall be the much higher risk/high reward Wombat 2 extended flow rates. In order to protect capital and profits, I have exited LKO for the interum until Wombat 2 extended flow rates are released to the market.
If Wombat 2 is a winner, well done to those who held through the risk. I will most likely jump on board again (in a smaller play) to ride the lower risk initial flow rate announcements from Seaspray and Wombat 3. If Wombat 2 disappoints or runs into technical difficulties, I have protected capital and have a much cheaper entry point later on.
Apologies to all if this sounds a boring approach but I do believe that it is a way of protecting capital, securing an already great profit, and allowing one to return for an extra crack at some cream on the cake while removing much of the higher risk associated with the potential higher reward of Wombat 2's extended flow result.
Best of luck to all holders. Remember that I am placing bits of a jigsaw together here and could be wrong. Lack of further announcements from LKO at present don't help...
Bought in to LKO at .004c. Sold out at ave. 1.5c. Profit after expenses c. 270%
LKO Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
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