Sell off

Back in April when Horizon announced it had secured its production licence for the Stanley wet gas field the share price jumped from the range 31.5c - 33.5c to the range 34c - 39c. Now the deal with ROC has fallen through they have fallen to 32.5c today. In other words they are back to pre Stanley licence levels. But the fundamentals are actually better than they were prior to the ROC proposal. Have a look at the recent anns and note that the goal of having a gas train in place is in striking distance with another to follow. In the short term, some big investors who had hoped to make a quick profit out of the ROC merger are exiting and the sheer volume of shares they are selling is driving the share price down. For the medium to long term investors this is a buying opportunity.