We were very lucky to exit this stock back in September of 2012 with a decent gain, looking to perhaps buy it back later but never got to doing that.

These guys had been around for a while and then all of a sudden decided to go overseas and offshore. First oil and gas in India and Bangladesh, then Indonesia and Trinidad. Then a corruption scandal and here we are at 9 cents. This is full circle, something that tends to happen when there are bubbles.

We show this chart because it a good schematic picture of what can happen. We have seen this with iron ore, oil and so on and it is impossible to know in advance if there will be a soft landing  or a crash. Commodities, of course, always come back simple because they will continue to exist. Companies are not that fortunate. Their debts can pull them down below zero.

If you followed the August 2 blog you would have either been stopped out with a $4 gain or made about $6, both on $13. Not bad. Also you are not participating in today’s dive! At present levels the stock must. once again , soon become a buying opportunity. No idea what that level is, perhaps somewhere around $5. Of course ,using English math., coming from 110 and soon trading at 10, constitutes a drop of 100 % and you cannot do more than that.

For educational purposes I have put a little red arrow on the spot where, according to the real bearish EWavers we are today in the overall market. Perhaps, perhaps not.

You should have been out somewhere above $19.25 and below $20.75, and if that did not work you should have been stopped out at $18. Lets just call it 50% (from $13) up in a very short period of time.

The actual low was at $11.50 so it travelled about $9.25 so it has already lost more than 60% of that gain. It could well be a buy again at around these levels but for the moment we would prefer the sidelines as this could be a 5-wave structure just as easily as an a-b-c correction to an otherwise upward trend. Principled investors investors could buy here with a tight stop.

We are , temporarily, inclined to step aside. Wait for one more high to the upper trend line and put is a stop at the lower one ($18). That guarantees a $4 profit no matter what and perhaps a little more.