that the company is running out of assets and once it does it really is worth nothing.
Rivermore - sorry about the typo on "unbelievable"
Mkt telling u that PCL has zero chance of success on this drill (I know I know always a chance - hence the reason why even though I moan about the co I still hold 1.35mln shares and I'm now down -£127,000). Why haven't I sold out and to answer DKnow previous question? To be totally honest, if you've lost that much money u might as well run it to zero. Losing -£127k or -£195k still feels the same. It hurts!
So if we all think the chances of this wildcat drill off-shore Kenya are so slim why do we think Namibia will be any different? So if this drill fails then the stock is 2-3c with an added capital increase just to add to our woes.
So what then? The last chance saloon in Namibia in 12-18 months. Someone tell me this. If a drill in Namibia fails (cos it has the same chances of success as this current drill) what then? Why would the stock trade any different during a Namibia drill because the mkt knows the company has very little left after that.
I'm running my position to zero because there is always a chance no matter how small (I would feel proper sick if I sold out near the bottom) but I shall say this. It is going to be extremely difficult for this company to raise extra cash with very few assets left. I was a lot more comfortable in this name when we had 4-5 possible drills but not as we stand now.
Even the most committed bulls must realise that this company will soon be a considerable trouble. I'm sick of hearing the "stock is cheap" because it clearly isn't. If it was cheap it wouldn't be 4.9c. The total lack of any rally tells u that. If another E&P had success in Kenya or Namibia and it was still 4.9c then yes I would agree its cheap. If we had success and it stayed below 25c I would agree its cheap but as we stand now, we are running out of assets, with have a capital raising coming and no other E&P has had commerical success off-shore Kenya or Namibia. At 4.9c it isn't cheap, its expensive. Probability tells you you'll be able to buy stock at 2c in the future.
Saying all that. I bought PCL for it to find oil/gas and if it does its 50c, 75c or even $1 so whever you buy it as 2c, 10c or 25c its irrelevent. It a pure high risk, high reward punt
PCL Price at posting:
4.9¢ Sentiment: LT Buy Disclosure: Held
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