Petro One Energy (TSX-V: POP) Market Review and Quick Peer Pricing Comparison
Tuesday October 4:
Petro One hits .70-cent intraday low on light volume as investors jumped to the conclusion that an imminent Greek default would signal the end of Western Civilization, international capitalism, and world demand for light sweet crude oil. Note that this pricing discounted not only all of POP’s potential, but also all of the cash and securities in the treasury, and the fact that the Saskatchewan Government has reported 7 / 7 exploration wells now production cased. POP temporarily returns to support at pre-discovery price range (!)
Wednesday October 5:
Petro One price establishes range in high .80s to low .90s as bargain hunters and perceptive investors of all kind realize the world is not coming to an end, and Petro One ricochets hard off long-term support lines. Investors remember the company has so far drilled and production cased 7 wells in nearly as many weeks, and that discovery hole 10A-15 is online, free flowing, and cashflowing, with more holes on said discovery being tested and brought online at a rapid pace. Smart money is working its way in.
Thursday October 6:
Turns out that the world’s economic and political elites have no interest in riots, revolutions, and the destruction of their own personal wealth after all. EU & ECB disclose they will do what it takes to keep banks solvent.
Investors realize that Greece has defaulted or rescheduled its debt 5 times since 1829.
France and Germany have done it 8 times. Spain has done it 13 times since 1476. What we see in Europe is nothing new. Anything less would be out of the ordinary. But for the first time in history, the whole continent is working in unison to work through it in an orderly fashion.
We just went through 2007-2009, which most of the gold bug newsletter writers told us would be an apocalypse beyond all measure.
We’re all still here, aren’t we?
Results:
Petro One returns to healthy volume and trading range north of $1.00 to hit intraday high (so far) of $1.06. Three day alpha from low of .70 to high of $1.06 is +51%.
Petro One’s immediate neighbor on J5 is Penn West (T.PWT) and one of their most likely early suitors. Penn West peaked at $28.09 on February 28, 2011. At that time, Petro One was priced at $ 0.45 cents.
Since then, Penn West has declined from $28.09 to $15.32, a net decrease of -$45%
The TSX declined from 14136 to 11704, a net decrease of -17%
During this time Petro One increased from
.45 to $1.02, a net increase of +$126%
POP’s net outperform of the TSX is +143%
POP’s net outperform of Penn West is +171%
Why did Penn West fall so badly?
Seriously declining revenues based on seriously declining production. Looks like they need some light sweet Oil and Natural Gas right away. I wonder where they could find it…?
Has anyone here noticed how quickly and quietly Petro One is getting production online on J5?
Do whatever you want with your own money, but I’ve looked at the facts and added up the numbers. I stick to my guns that POP is my number one Oil and Gas pick and Gold Strike Resources (TSX-V:GSR) is my number one Yukon exploration pick. Irrespective of the markets, these trains are leaving the station, and I hope some of you have the good sense to join me in the luxury dining car.
Fortune Favors the Bold,
James Hudson, AlphaFlight Portfolios Inc.
