PEP is notorious for "sell on news day" action.
I believe it is attributed to this. Management doesn't provide updates often enough....they don't keep the momentum going. Therefore, on spikes like this, there are several people left holding the bag every time and they end up killing the future runs by bailing to recoup their losses, or break even, etc.
With that being said......Gen 2 tool results should be due within the next month (currently past due). If results are similar to the last results (600% increases in production), there will probably be another pop, and another selloff as there isn't a lot of earth shattering news coming down the pipe after that. With a lot of people selling today who have been sitting on sleeping shares for several months, this could be a refreshing movement to clear out old hands for when the DHT test results are released.
You can almost bet your children that there will be another PP up around this level.
For the past while I've been buying anytime it's dropped below .18 and then selling around .19-.20. Flipped it slow and steady a few times like that over the past months. Last year I would load up before results.....and on news day put in a market sell and bail on open with the majority of the crowd. I have flipped this one several times with profitable success.
To be honest, this news released today with regards to the Bakken land caught me off guard. Petrostar typically upticks significantly for a few days in advance when something like this gets released (I attribute it to a news leak). I was looking for that significant uptick as my buy signal to really load up and it didn't really happen this time. Maybe a tighter ship is being run now. Today I sold off my small holding but I'll catch the next one a little heavier.
From my experiences with Petrostar, the safest and most efficient way to trade this one is to buy during the dead periods between news (Management leaves their shareholders in the dark for sometimes several months and being able to reach them is often as successful as trying to design a solar powered flashlight). During those dead periods, the price stagnates to dismal lows. That is when you load up....and pitch them off on news day to the new faces fresh to the Petrostar story.
Until Petrostar gets new management (or current management steps things up a serious notch and keeps better contact with shareholders), it will take some pretty incredible developments to bring the share price up and keep it up without having the momentum die off. Until that happens, it is strictly a trader for me. A quick nickel beats a slow dime.
Some of the longs may be bitter at this blog posting......but it brings me to one of my favorite quotes:
The tarantula jumped on the centipedes back
and chortled with ghoulish glee:
"I'll poison this murderous son of a gun.
If I don't he'll poison me!"
For the newbies out there, don't fall for the pumper posts claiming 1 dollar share prices and other nonsense. Treat this one like an emotionless numbers game. No other faces out there except for yours. Safe trading, and may your account prosper.