You are right about the need for an exit strategy and yes those 50% retracements are gut wrenching. But I do think this is one stock you can safely buy and hold for the next couple of years. My guess is that Fern is totally single minded in his desire to recapture past heights and and prove to his peers and his shareholders that his strategy can be successful.
I think we will see instos chasing the stock, they will need a piece of the action any way when it makes the ASX 200. And if both Vermilion and China are half way successful a lot of the potential downside will disappear.
What gas prices and the dollar will do in the future is any body's guess but I very much doubt we will see $3.00 gas again.
My problem recently is that I tried to trade a large parcel of shares on a two day line of credit on the expectation the announcement we got last week would send the shares up. My timing was out by a week and I got caught. I still managed to get out ahead but as we all know you just can't exit PSA in volume without sending the price down and what we are all now hoping is the vice versa.
PSA Price at posting:
0.0¢ Sentiment: None Disclosure: Held
