[Off topic]
Kenny: Don't want to sound preachy, but be careful with ROR. I know it's not a huge stake, but money is money. I've gotten quite an education from Razor, Tad, Taylor and qdog as far as oil exploration, and I've added that to my five years with IRPPF and OIL. A one shot bet like ROR is dangerous in that the odds of finding oil on any given drill are against you! No oil - no stock $. Timing is everything with these puppies. I would say buy on the PR news and take your profits before the drilling is completed, unless you just want to hold for several years.
Two quick illustrations - RSO, note the stock run-up from "Hey, we're gonna drill for some oil!" (Sept-Nov); to "First well spudded", late Dec.; "Progress" reports from Dec-Apr; "Sorry, No oil" - Apr 29. The high was reached early on in the game, before any drilling took place, and it was a bouncy ride down from there. It seems contrary to logic, but there it is in black and white. Also note how the smart money disappeared long before the final outcome was known.
chart.canada-stockwatch.com
cdn-news.com
Here is another object lesson - remember Seven Seas - they have that billion barrel find in Columbia that everyone at HEC is excited about? This is what happens to co's that have limited resources, even if their drilling is successful. The most challenging and most expensive part happens after all of the euphoria of the initial discovery wears off, and it can be years and years before the stock price recovers back to the "discovery" high. Many of these small caps never make it, or wind up diluting their shareholders holdings to a pittance:
The chart:
chart.canada-stockwatch.com
The two critical announcements:
newswire.ca
newswire.ca
I think you also follow the Abacan (ABACF) and Arakis (AKSEF) threads, which are more illustrations of similar situations (as is my favorite IRPPF, alas).
Hope I'm not boring you to tears - I won't be offended if you say "I know all that" and tell me to save my typing fingers. Just sharing my humble $.02 worth.
Alex |
