Pancontinental Oil & Gas (PCL) is a stock I mentioned on Thursday night as one to watch on Friday after it came up on my scan. The stock managed to hold it's strong gains from Thursday and finish even at $0.11 on Friday (03/03/2012), again on good volume. The stock hasn't gone unnoticed with the ASX as after market a price and volume query was issued and responded to. The company advised there was nothing that needed to be announced to the market.
Hartley's issued a research note on the company earlier in the week which may have prompted more interest in the stock. Hartley's rates the stock as a Speculative Buy and has a six month target price of $0.23 due to a number of catalysts.
It is interesting to note that Jacka Resources (JKA), a stock first mentioned in a July post last year (also $0.11 at the time), had it's shares up $0.01 to $0.165 on Friday on good volume. So the link? Both companies have a joint venture to pool resources to evaluate petroluem acreage opportunities in East Africa. I am wondering if JKA has started running as a result of PCL running and the market is simply guessing that they may have finalised an application for an onshore asset.
Considering PCL received a 'please explain' from the ASX on Friday it will probably take the wind out of it's sails. If JKA continues to rise there may be some news directly and only related to JKA around the corner. If JKA backs off then we know the market was only speculating on joint venture.
One thing is for sure, JKA technically looks great so if the rise is not broken then definitely keep an eye on it!
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