There were so many shareholders poised to sell that I believe even if the news were good we would have seen a selloff (preceded by a small pop). Shareholders have been waiting for this release for months and even though the price of NG has dropped so much, the Utica juniors have not dropped that much (relative to the price of NG).
I think the events of the past couple days are good for a couple reasons. First, you get rid of the speculators, the people that did not understand what they were invested in and were just hoping for a quick flip. Second, those of us who missed out on getting in at the early stages now have a second chance to buy these stocks at cheap prices.
Gastem closed at 0.215 today! That is absolutely crazy. The current market cap value is just under $13 million. Gastem's working capital is just under $15 million. It's current total asset value (including deferred exploration costs) is $23.5 million. How does this make any sense?
The market is basically pricing its Gastem USA operations at NOTHING, in fact at negative value. They currently have a 25% interest in Eplison's interest in the Amber Bank West Viriginia - with wells that are generating revenue and this is priced at nothing. They have their New York State Utica Shale Project which should receive permit permissions this summer and that is current priced at nothing.
This is not even their core holdings:
Their whole Lowlands land porfolio is current valued at nothing; Yamaska (45,381 Hectares), St Jean (79,537 Hectares), St Jean North (21,836 Hectares), Joly - Farm in (14,050 Hectares), St Simon - 10% interest.
We haven't even touched upon the Gaspe properties; Matapedia (296,704 HectareS), Petrolia Haldimand - 10% Working Interest, Iles de la Madeleine (17,520 Hectares).
As a shareholder, I have seen lost quite a bit of money on Gastem up to this point, but I think the current buying opportunity is a once in a lifetime gift. 0.215? I'd say that is a slight over-reaction.
Good Luck to All,
gT
