It makes one think on how and why the stock crashed.

My theory has to do with the large short postion that was on against PSN.

The Q2 results were reported  at the begining of week 6 (August 8th 2012) in  Q3. At that time  Lyle D. Michaluk  stated " Poseidon Concepts Corp. ("Poseidon" or the "Company") (TSX:PSN) is pleased to announce record quarterly revenue, EBITDA, cash flow from operations and net income driven by continued growth in customer demand during the three months ended June 30, 2012. The Company is also pleased to maintain its guidance for 2012 EBITDA and third-quarter tank fleet growth".

Their is no way that within 6 weeks after that reported date that the rug was pulled from underneath this stock and earnings just died becasue of the market conditions. I dont buy  that theory . The theory I buy is based on PSN management and the plan to turn the Shorts in to buyers but closer to the share price of the 52 week low of  about $10.00 and not the $5.00 range that we are trading in and around today.

Further in the new release he states "Also of note, our U.S. customer base consists mainly of large, well-capitalized companies with extensive hedging and long-term capital programs, which tends to insulate their activity from short-term commodity price movements such as those experienced in the second quarter". " and we continue to forecast exiting the third quarter of 2012 with 500 tanks".

PSN as we know had a strong Q1 and Q2. Prior to the reporting date the stock price seemed to decline then rebound to the previous stock price ;eventhough,they beat estimates.

In saying that I beleive that the company is trying to reduce this large short position for the benefit of a stronger share price down the road.Both Q's beat estimates and the stock price settled to the previous day(s)  trading range.

Since the stock did not move after the Q2 was reported. I beleive PSN took a different approach and slowed down their sales force by refocusing them on existing contracts in order to showcase the newest products and services that they are developing so the drillers and oil companies can truly have a one stop shop for all their future needs and services that go along with drilling, storage and cleanup not to mention the treatmeant of fraking fluids.Thus their present contracts are not lost to a competitor in the future.

Never in my wildest dreams would I have ever thought that PSN would be oversold like this. As the shorts turn into buyers and PSN gets back on track the stock willl begin to  trade to its proper evaluations. That may take a 2 to 3 quarters but as a Long I can wait it out.

Alot of the above make perfect sense given the fact that they had strong earnings but their share price was flat and not rising at it should of been .

IMHO

Bla