Samson Oil & Gas (AMEX: SSN ) : The stock fell more than 14% in one week. And the move by the market might be justified. This is a company whose cash outflows are currently greater than its inflows, thanks to substantial capital expenses and barely any profits. But what the market might have missed is this: Samson is developing its reserves in the Bakken, which should substantially add to production this year. Once this happens, I expect much stronger cash flows. In simple terms, it's an up-and-coming exploration company and its current situation doesn't really surprise me.
SSN Price at posting:
9.3¢ Sentiment: LT Buy Disclosure: Held
