Wow! I have been a holder since the ENTERA days. I have even added to position recently. Today my conviction is really tested, a day that we hit an all time low despite the abundance of positive news. This is not adding up at all.
Today we got:
1. Pending and imminent announcement of strategic review to unlock value. 2. Natural Gas Pricing Soars 12% 3. Oil up 2% 4. Broad Market Indices have one of their best days of the entire year. 5. EQU Stock Value, using the most conservative matrices, is significantly undervalued - it should be a screaming arbitrage play at this point.
This should all equal (no pun intended) to a least a day or EQU is on par with the averages but Noooooo.......instead price does the exact opposite, and tumbles to its all time low.
I am asking myself: Why would anybody be selling at this point at these prices? I see (2) possible reasons:
1. "They" are shaking of the tree of weak hands before stock soars.
2. People in the know, are bailing out now - with knowledge that review is NOT going to yield the results the market wants to hear. Small cap stocks are often a fixed insiders game.
At this point, the cynic in me is going with reason #2.
I have drawn my line in the sand. Once the price crosses this line (not too much father to go) I am out. I know buying low and selling high is the name of the game but I don't want be in a situation where I am buying low and selling for nothing.
Anybody else got a possible reason for hitting new low?
Cruces, I too go back to the Enterra regime, and days like this are getting harder and harder to stomach.
Right now, there is so much noise around EQU that has nothing to do with actual operations, my belief is that only some positive news on the first OK well is going to stop this slide. If they are indeed commencing drilling this week (does anybody know for sure?) when is a reasonable time period to expect some feedback?