quote:Originally posted by jon clogger: Some folks on the google finance board are calling this a "boom or bust" play. If they actually find oil in the ELK2 well, it should go to $60 pps overnight. If not, a lot of shorts are calling it around $8-10 since they are out of money and are far from being profitable.
Makes me nervous...
Exactly my thoughts. That's why I'm staying out of this one.
-------------------- Everybody needs money. That's why they call it "money."
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Net loss for the quarter ended March 31, 2007 was $5.7 million, an improvement of $8.6 million over the same quarter in 2006. EBITDA for the quarter ended March 31, 2007 was $2.7 million, an improvement of $11.8 million over same quarter in 2006.
Even if they run out of cash obtaining further financing should not be difficult with their financials.
Elk-2 or not, IOC is growing and turning more and more towards profitability..
No clue what the "shorters" are looking at. Elk-2 is costing them money contributing to holding back the rest of their financials.. it is not the death of them, however, if elk-2 fails. With the added costs of Elk-2 they are still pushing more towards profitability.
The price has been inflated though on hopes. Give em that much.
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Im looking for my 28/30 by end of week, but will continue to hold. Volume is showing distribution. And the price/book is outstanding right now at 7.66 compared to the rest of the industry at well over 20.
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The put-call ratio is primarily used by traders as a CONTRARIAN INDICATOR when the values reach relatively extreme levels. This means that many traders will consider a large ratio a sign of a buying opportunity because they believe that the market holds an unjustly bearish outlook and that it will soon adjust, when those with short positions start looking for places to cover. There is no magic number that indicates that the market has created a bottom or a top, but generally traders will anticipate this by looking for spikes in the ratio or for when the ratio reaches levels that are outside of the normal trading range.
Current Put-Call Ratio for IOC is 1.49. Historically, when IOC's P/C ration exceeded 1, the stock made substantial gains.
Short interest also presently stand at approx. 7,400,000 shares. Another very bullish sign.
Finally, I believe the high put activity may only be longs hedging against other short attacks, while protecting their upside positions. For example, a long with 5000 shares can protect that position by buying puts with a $20 strike price for about $5,000. Any increase in the stock price by a $1, pays for the protection, and if another short attack occurs, the long is fully protected, while maintain his long position with all the upside potential.
The best way to play IOC at this time is to be long, with some downside protection. Insurance is cheap, and is a small price to pay for sleeping well at night.
Just as those who are naked shorts are unwise, so would any long be unwise without some downside protection. Hence, the put activity.
We're going up past 30 this coming week.
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L2's show great strength. Im holding unless it hits $18.
This feels alot like someone knows something and is trying to get cheap shares. The price is definetly not dropping on bad news otherwise it would keep going south instead of fighting to come back up.
Nobody constantly raisies back over the bid on bad news.. you want out fast on bad news.
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