IPB was an IPO that occured around 4 months ago with a 50c share issue . The lead broker being baileus clearly did not support the listing as the stock dived almost immediately on listing, this was despite the drilling program having very big backers including the Warren Buffett oil and gas business Cal Energy ( a bullion $$ business ) who are supplying the capital for the drill rigs on these holes ( estimated to be over $30m ) .
At 25c the market cap is very low for a business with this type of backing , cash in bank and high semi proven prospects .
The stock at 25c is now 50% below the IPO price yet they have not even commenced drilling or had any negative news since the issue , they have actually had good news in they signed on additional ground , and are now expected to begin their drill rigs in the next month or so
From a TA basis I am expecting a strong bounce towards the IPO price as the drilling rigs go in to action .
My thinking is that the strong Buffet association for an Australian ol and gas explorer will get press as they begin drillingand from a TA basis this will get a spike in the stock .
The board includes Shane tanner of ( Mayne , Funtastic , Vision group ) and the CEO and key executive are ex BHP and Nexus Oil and Gas people .
