KINGSLAKE ENERGY (KGLJ)
I dismissed buying Index Oil & Gas (IXOG) as I'm not sure it'll move the way I would want it to. What I've been looking for is something that has potential to go from the possibility of something to actually getting it. Sort of like Goldspring who may have enough gold and silver in their land to mine it, but this has not yet been established. IXOG have already moved passed that point as they're already delivering natural gas to customers, so I've been looking for something different.
Kingslake Energy (KGLJ) isn't all that different, except for one point: the current price. IXOG has been trading around 60c for a while now, and until recently KGLJ had been trading around $1 but then dropped to just 2c in s day! Rumour has it someone had to sell their shares and dumped 198.000 on the market - no wonder the price dropped. Anyway, if this rumour is correct there I see at least two possible reasons: either the owner had to sell for financial reasons or the company is in trouble and this shareholder knows. First reason can happen to anyone but the second hopefully shouldn't happen without a public announcement. Acting on knowledge like that could be seen as insider trading, but when evaluating the risk involved I wouldn't rule it out.
Anyway, I lean towards the first type of reason, that doesn't involve anything bad about the company, and taking into account what the company have been traded at, what it's trading at at the moment as well as the latest news about production starting up I decided to place an investment in the stock. Not exactly a huge sum of money (again, I only set aside $2500 for this hobby) but I manages to scrape together 10.000 shares. There's not that many shares available at a time but there was liquidity enough for me to get them all at $0.026 in three batches (I'm glad I'm not paying commission at Zecco :)
So far it's been a good idea. KGLJ closed at $0.029 which is a nice 14.5% increase. It should have a good possibility of gaining even more over the next few months as they've just started drilling for more natural gas.
Kingslake Energy (KGLJ) isn't all that different, except for one point: the current price. IXOG has been trading around 60c for a while now, and until recently KGLJ had been trading around $1 but then dropped to just 2c in s day! Rumour has it someone had to sell their shares and dumped 198.000 on the market - no wonder the price dropped. Anyway, if this rumour is correct there I see at least two possible reasons: either the owner had to sell for financial reasons or the company is in trouble and this shareholder knows. First reason can happen to anyone but the second hopefully shouldn't happen without a public announcement. Acting on knowledge like that could be seen as insider trading, but when evaluating the risk involved I wouldn't rule it out.
Anyway, I lean towards the first type of reason, that doesn't involve anything bad about the company, and taking into account what the company have been traded at, what it's trading at at the moment as well as the latest news about production starting up I decided to place an investment in the stock. Not exactly a huge sum of money (again, I only set aside $2500 for this hobby) but I manages to scrape together 10.000 shares. There's not that many shares available at a time but there was liquidity enough for me to get them all at $0.026 in three batches (I'm glad I'm not paying commission at Zecco :)
So far it's been a good idea. KGLJ closed at $0.029 which is a nice 14.5% increase. It should have a good possibility of gaining even more over the next few months as they've just started drilling for more natural gas.
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