Guy,I was told by my a friend in finace yesterday to get out of...

Guy,

I was told by my a friend in finace yesterday to get out of this share for the following reasons.

1. Market Capital of $500M when the company only made $6M last year. Share price is crazy based on that fact. This is why the share dropped when the yearly report come out. Some investors realised this was a poor result compared to the market capital.

2. Big oil reserves account for little if the production does not increase.

3. Current share price is all hype and will die in the stort to long term.

4. Share price is based on company profitablity. He can't see this changing unless production increases substantially.

5. He still believes there is some short term gains to be made on the hype, but can't see $2. Share price will kick up when they find oil, and they will. It will be unlikely to be a well will high flow rates. This is "extreamly" rare in the area they are drilling.

I sold half my shares yeasterday based on this.