Before we get into the FUNDAMENTALS of this company, check out why CGCA is already a great "technical" play at current levels right this minute
1) The stock could be sitting at, or very close to, SOLID SUPPORT-this could MAXIMIZE RETURN while MINIMIZING RISK.
2)The stochastics are indicating EXTREMELY OVERSOLD CONDITIONS-this is usually VERY BULLISH and suggests a likely bounce in the near-term.
3) Volume on the recent move up was considerably higher than volume on the way down---this often suggests HEAVY ACCUMULATION and, despite the powerful surge, minimal profit taking. This, too, is VERY BULLISH.
4)After a tremendous move in July from 40 cents to $1.90, the stock has retraced almost exactly 50% of the move---often considered an IDEAL ENTRY POINT.
So what exactly does CGCA do and why do we think the timing could be perfect?
Cobra Oil and Gas Co. (CGCA) is an oil and gas exploration company with the twin goals of contributing to American energy independence while growing shareholder value.
Cobra Oil and Gas Co. (CGCA) is focused identifying short and long-term oil and gas opportunities in PROVEN, DOMESTIC energy plays
Cobra Oil and Gas Co. (CGCA) stands to benefit from new extraction technologies and higher energy prices (now at a new 2009 high of $74 a barrel) making it possible for us to produce oil from oil sands right here in America.
Cobra Oil and Gas Co. (CGCA)has entered 3 LOIs since June 27 and ALL 3 were successfully closed in LESS THAN A MONTH
Cobra Oil and Gas Co. (CGCA) has been joined by the likes of Exxon ($337B), Pioneer ($3.5B), and Questar ($6B).
And check out this EXCITING NEWS recently announced by the Company
CGCA just picked up 640 more red-hot acres on the sweet spot of America's Secret Oil Field, in Utah.
That's right CGCA recently announced that it had completed a purchase agreement with Enercor, Inc. for a 62.5% working interest covering 640 acres within the P.R. Spring Deposit in Uintah County, Utah.
Max Pozzoni, President of CGCA explained, "We are excited at the progress being made in expanding our rights within the intended P.R. Spring Deposit."
He added, "We are excited at the progress being made in expanding our rights within the intended P.R. Spring Deposit." To read the full article Click Here. Just look at the nearly 1400% move in just 2 months of a similar company, Avro Energy (AVOE).
Could CGCA be set to embark on a similar move as AVOE? We think it is a much better company, and with the stock as beaten down as it is right now the opportunity looks even more compelling.
And with the recent 50% pullback in CGCA and new 2009 high in crude, this "bullish divergence" between the fundamentals and technicals could be a SCREAMING OPPORTUNITY.
We think this gap between crude and the CGCA stock price will narrow very soon.
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