Technically Speaking – POCC.OB is about to Rock!
Nov 30, 2007 Small Cap Stock Picks
I mentioned this stock earlier today on the shout box noting the bullish breakout we have in play here. This could turn out to be a big winner as techincally this is one of the best charts ive come across in a while. Price action has been driven by strong energy prices and news of acquisitions of Rio Vista Energy and natural gas producing properties. POCC owns 75% of Rio Vista.
More Info:
“The acquisition of these Properties establishes a significant reserve position for Rio Vista, and provides excellent prospective drilling candidates,” said Doug Manner, Chairman of the Board of Rio Vista GP. Ian Bothwell, Acting Chief Executive Officer added: “We have already identified immediate opportunities which will provide significant additional production, including workovers of certain wells and drilling of specific locations. The funding for these projects has already been arranged and we expect to begin immediately. I fully expect that once completed we will achieve immediate results. The Properties are located in areas known for generating prolific amounts of natural gas, which we expect will significantly enhance our revenue, cash flow and reported earnings. We believe that these Properties represent the initial step in transforming Rio Vista into a diversified oil and gas producer.
Based on recently completed reserve reports, the Properties have estimated natural gas reserves of approximately 25.0 BCF, made up of approximately 8.8 BCF proved developed reserves and 16.2 BCF proved undeveloped reserves (sted Based on recently completed reserve reports, the Properties have estimated natural gas reserves of 9 BCF, made up of approximately 2.8 BCF proved developed reserves 6.2 BCF proved undeveloped reserves).”
I’ll dig a little more over the weekend but i think just the chart alone here might be worth the speculation of buying.
Looking at the daily short term chart we can see that price made a strong breakout of a triangular pattern with a significant volume confirmation indicating this is the beginning of a longer move north. Though with todays 46% rally i think we could expect some consolidation and profits taken before a continuation occurs. Optimal entry in my opinion would be near $2/share which is also around the breakout point of horizontal resistance.
Taking a look back 5 years on the weekly chart this gets even more impressive with a pattern i suppose we could call a cup and small handle breakout pattern on a long term scale which leads me to believe this breakout is legitimate and worth at least a small position if not a full one. This Cup and Handle pattern suggests a technical target near $3.50/share or 80% increase or so from todays closing price.
I think I’m convinced here, i want to try and pick up some shares given the chance at or around $2/share
