why buy kar now ?

Dear holders and friends,


Who follow my opinions know that long time I'm critic of the management (poor in marketing poor in obtain new big ,medium and small investors).

But express this now ,on top of be repetitive is no point.. Too late and the effect is clear in the screen.

But comes a stage when a complete re-assessment of the share must be done.

What exactly changed from 2 months ago when we had 5.20 and Grace WAS NOT PRICED as a winner (was priced as a loser).

Nothing, absolutely nothing new.

That usually is the best investment.. When the share price is down for no other reason than some market sentiment down, but no on single fact realistic justify.

I remember not far ago I bought at 3.90 and sold close than 6.50 in months. Really few months.

The price now is the price (not giving advise please.. just expressing my views).

lets face the truth..

Kar must achieve one deal in Browse another in Brazil, another in Peru and another in Carnavon.
The first two ones have PROVEN discoveries.

Its completely different than the "grace" problem (lack of real interest).
The Grace problem was for sure created by proximity of Kontiki and maybe all data available gave so small chances (less than usual) or in best scenario the same level of chances and nobody came on board.

Brazil and all entire Browse is completely different matter.

Both have enough discoveries to make any single investor highly percentage of chances to be the winner. This is what the big investors want... better chances to put their money.

I sincerely don't see too much difficulty to achieve the JV in both areas. This agreements will have a double effect.

In one side will put Kar with something like 500 m cash with 250m shares..meaning, we will have around 2 per share in CASH.But two deals will put our cash at around 3.5 per share just in cash.(Im talking about 300m each and selling 10-25% of our drill programme in two areas)

The second advantage will be the high confidence that not "just us" believe in the well... somebody else also.
That always makes diference,mainly coming from we are coming.

Third and final advantage as soon the drill will recommence the excitement will return.Excitment because are areas where several discoveries happen in the past and all in the same areas and formations.

If you can afford wait months maybe Kar is the best bet in entire market.
For sure much of us put a lot of money in past, remaining too low gas to go ahead buying. But the buy (averaging down) at that stage looks the correct strategy(i'm not advising.. just expressing my view)..

Also its more than time to remember each short seller can become our ally as soon a good new comes, because they must run and buy... Their rush is our friend.
I believe the most part of suffering is done... Still drops ? for what ? 3.50 ? 3 ? 2.50 ?
Every person is smart enough to judge what he pays...
I'm buyer at this levels... and changing my category of investment from short term to medium term(means 3 to 6 months)..

I hope in 6 months or much more less I can come here and say..

Please friends. read my post on 12/12

Good week (I'm in NZ in a way to Brazil)

cato