Whoever bought EKA at 32 cents, then wow you got lucky, even if you were only looking at the short-term- congratulations to you.
For those who got 'stopped out' (your low stop loss hit), then this is the reason why stop-losses can hurt on fundamentally sound stocks, especially stocks with very little liquidity like EKA.
Although this is down 2.5% today as I speak, I am more happy holding EKA than I was yesterday. The Market depth has picked up radically. Yesterday I thought that there was a chance of a shake-out happening, purely because there were so little buy orders. Additionally the buying interest was stronger than before after it hit such lows, which shows confidence.
A production update should be on our way soon, especially with news on our Direct Assets well. Jordan-1H and Hollman-1H could be fracced this month or early March as well.
AUT's reserve report (only on the Sugarloaf reserves section) should have a flow-on effect on EKA as well, as it will show how our Sugarloaf holding has progressed reserve-wise as well.
I'm looking forward to the Half yearly report, we should have several more wells onto production and should be cashflow positive for the 2011 financial year, even after the CAPEX component of the wells. Patersons thinks so anyway.
EKA Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
