I didnt say they were going to fail, I just said that there was no price support and that the company is over valued. I never base my judgements on what others say, as you would suggest, and $11 million is peanuts, you can burn that up very quickly, escpecially in oil exploration. Oil exploration is the most difficult of all exploration and most uncertain. I know I have been critised for comparing this company with urnanium specs but at this price level the the overall effect is the same with most speculative companies. A quick rise followed by a fall. The 80 million finance you suggest they have is all conditonal and subject to exit clauses. They can loose that funding any time. Manny oil exploration companies hit sand and three good holes hitting sand would cost this company 3 million.
The effect would be loss of the 80 million in funding and the investor base would be scared off. I am very tallented at extracting information from certain sources but this is an open and shut case. The 80 million is all conditional, oil exploration is costly and a failure would shake investor confidence. In my opionion based on past experience its over valued.
Take a look at elk patrolium they are a small oil producer, last year they were produceing 200 barrels a day and 10 million in the bank, with huge upside and good ground. They only have 50 million shares on issue and their share price was 20cents. They are increasing wells. Then you are saying that CTP is worth 90cents a share, based if you compare shares and options on issue 280 million with no production and all finance conditional.
If you dont like my reasoning then dont read my posts, it sounds like a lot of you are day traders upset because I give you an option that doesnt suit your short term goals.
CTP Price at posting:
0.0¢ Sentiment: None Disclosure: Held
