I know how tough it must be having shares in Baraka. Its share price has been falling ever since Oct 2006. Thats when i started buying in. So my advice is hang in there, i dont think im the cause , but i must admit the cancer has taken a firm hold on this stock.
At the AGM, management acknowledge that the share price was a major concern.
Since listing in MAY 2005 at 0.20 cents i have some info re charting as follows:-
MAY 2005 to FEB 2007 = 22 MONTHS
Of the 22 MONTHS the share price was only completely below 0.20 cents for the whole month was On listing May 2005.
Since June 2005, bkp share price traded on or above during every month up to FEB 2007.This is base on 1 day during the month that bkp traded at 0.20 cents or above.
Now this is the interesting part. When BLOCK 20, Heron 1 was completely known as a dry well, FEB2007 by most smart investors, the share price started its very rapid downward spiral.
12 months later, we have a company working as hard as management can, BUT the Market is not the same. We have the RBA, working overtime to bring our Economy into a Recession.
The hard reality is, the RBA does not Care how many people Loose their homes. The RBA knows the people doing all the spending are the very rich. They dont care if interest rates go up. The majority of the population is living on a knives edge, and with many more interest rates rises, we will all witness the Death of the Housing Market. The amount of homes which will go onto the Market for sale , along with many mortgages going into recieveship by the banks will be a catastrophe!
The RBA, is going to bring our Economy in line with the rest of the world, especially USA. USA is experiencing huge problems with the Sub Prime Fiasco!
Back to BKP. One of the main reasons BKP is out of favour with the market is they have not drilled any wells since HERON 1 in Block 20 Mauritania. Hence the decline in its share price!
Now for the good news. All you guys who have been around and followed BKP over the last couple of years, will know that it would be absolute madness and Stupidity to join the Herd of Bears and follow suit. It would be on the same lines as joining a flock of sheep and heading to the slauterhouse.
Baraka is about to drill 2 wells over the next 2 months, so PATIENCE is the KEY to SUCCESS!
HANG TOUGH and YOU WILL BE REWARDED. FOLLOW THE SHEEP, and YOU WILL BE JUST ANOTHER FACE IN THE CROWD.
Crazy K
BKP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
