3SOF

Hello David,

Just wondering what your thoughts were on the long term prospects of Sky Petroleum being a legitimate company. It is quite obvious there are manipulators controlling the price; the annoucement of Don Cameron CEO was actually late, because they had annouced it on their site the week before (at least). However, it certainly does give the company increased credibility.

I'm certainly fine if they continue to manipulate this stock upwards lol. 

I tell you the2ndhokage, since I saw what happened to EDNE.OB, clearly a stock being manipulated, I believe anything can happen with these stocks. A pool of manipulators has the job to take the stock as high as possible and then sell on the way down ... we'll see how high they take SKPI.OB, I hope it will be really high 

We just have to continue to monitor the stock to see when they stop manipulating it, and then get out with them ... but I don't think this will happen before a bubble in oil stocks  comes, I can see it coming !

These manipulators know what they're doing. A surprise rally took the stock to an higher level. Now they're maintaining the stock price at that new level with little, if any, money on balance.

The stock will probably hang around these levels with low volume before another surprise shot up occurs. Manipulators are not worried about selling their shares, they know demand will increase as the price rises  . George Soros, on Alchemy of Finance, talks about this, stocks look like luxury goods, many times demand increases as the price rises and diminishes as the price falls.

52 week high today 1.27

It feels good to be in the hand of manipulators, because at least you know someone has a strong interest in putting this up. Yesterday the stock was up 7% on just 63,000 shares traded, amazing.

Keep holding SKPI.OB, take it as high as possible and sell on the way down ... but one has to see something like a distribution phase before considering a meaningful top was put in place.

Confortably holding SKPI.OB.

SKPI.OB just keeps on going. Volume is low but that doesn't matter, clearly a pool is in charge of taking this higher and creating a market at the top for distribution. Low volume is a good thing here, it will be easier to take it higher.

Hi Dave,

Is it too late to go in at 1.38?
I would love to jump in but the stock got already a nice 25% rise, so it looks very risky, don't you think???

Jumping into a stock at such a level of rise, made me burnt my fingers more than once!  Lol!

In fact,  I just need to know what is your target level and your exit level for SKPI.OB.

So I could figure out the reward/risk ratio, after doing the maths!
Following my book, it should be at least 2.5!  Any other view?

Regards

Hello phabrux, thanks for your post. Could you tell what is your book?

The fact that the stock rose doesn't make it more risky, quite the contrary I believe.

I wouldn't like to see it close below $1.08 again, so you got your stop loss level. The upside potential is almost unlimited, you see, the stock is at an all time high on a very hot sector, expecting a speculative bubble in the coming months (that analyst yesterday on Bloomberg calling oil at $100 just adds fire to the situation).

I don't know how you got your $2.5, but after what I've seen with EDNE.OB I won't turn my back to these stocks being manipulated.

For decades manipulators do their job this way: take the stock as high as possible and sell on the way down. So don't expect many corrections along the way, they will take it as high as they can and the cheapest way to do it is the fast way !

Confortably holding SKPI.OB.

Hi Dave,

sorry but I don't remember the title of the book.

Ah! This is very disturbing,  I just find a article who suggest to use
a reward  to  risk  ratio between   3 and  4 and  not 2.5  like I said
previously!(so  with my  2,5   I was far from been conservative!) Here
are the lines:

One way of determining if the potential reward is worth the risk is to
use  the  simple Reward:Risk  ratio  which is  calculated  by (target
- entry)/(entry - stop-loss) and setting a minimum requirement  before
a trade is considered.

In longer term equity trading the ratio should at least be 3 or 4, but
in  warrant  trading where  we  have a  relatively  big stop-loss  and
shorter trades we need to be more "conservative" with a requirement of
2 or even less when we  build the safety factors in somewhere  else as
well.

The full theory is explained at this site:(I don't know how to post  a
Url adress on 3SOF forum???...., maybee this will do the trick!)

http://www.finance24.com/trading/sawarrants/displayarticles.asp?Articl
eID=298386


"..........I don't  know how  you got  your $2.5,but  after what  I've seen with
EDNE.OB................................................"

Dave,.....it seems to be a misunderstanding about the  2,5 figure.
This was the figure I had  in mind yesterday for the Reward  to Risk
ratio to use before entering in the stock. Lol

I hope SKPI.OB will keep rising!

Happy Trading!

Thanks for your explanation phabrux 

SKPI.OB just keeps on rising, another all time high was set on Friday. Volume is low, which in this case is a good thing.

The lower the volume, the lower it is costing the pool of manipulators to take the stock price higher. If the cost to grow the share price is low, why not make it grow a lot? 

I'm not worried holding SKPI.OB as long as it shows low volume. Manipulators still need to create a market on these shares before they can sell. Distribution needs high volume and investor interest.

Nothing to weigh or consider, I'll continue holding SKPI.OB for the foreseeable future.

It is possible the manipulators of SKPI.OB will let the stock trade between $1.30 and $1.50 with low volume, like they did with the range $0.95-$1.08. Later, they will break the range higher and led some more buyers and traders to the stock.

Remember, they need to create a market on the stock. Predictable moves and a stable chart helps attracting traders.

Regardless of what happens over the short term, I'll continue to hold SKPI.OB.

SKPI.OB traded just 48,350 shares today and I'm happy about it  This may seem strange, and you need to read this thread a bit back to understand my reasoning.

Confortably holding SKPI.OB ...

Hi,

What are you thinking about the SKPI - zero volume today?!

I don't see any trade: http://www.otcbb.com/asp/Info_Center.asp

Regards, Gregory

Quote from: gri64 on August 11, 2005, 11:11:02 AM
Hi,

What are you thinking about the SKPI - zero volume today?!

I don't see any trade: http://www.otcbb.com/asp/Info_Center.asp

Regards, Gregory

Hello Gregory, in fact, the lower the volume the best for SKPI.OB. When volume kicked in a bit we just saw the stock up 28% with just 83,800 shares traded, can you believe it? Off course you can, it was true at the high of the day ... that goes for volume considerations around SKPI.OB, that is, don't consider it.

We got some news while I was out ... I see the CEO has options to buy shares at $0.5, $0.8 and $1, 500,000 shares at which level, which is not very relevant since the company has 26 million shares outstanding.

We also had these news before the market open on Friday:

«Sky Petroleum Announces Completion of $8.0 Million Private Placement
$8.0 Million Private Placement Oversubscribed
Aug 12, 2005 2:00:00 AM

AUSTIN, TX -- (MARKET WIRE) -- 08/12/05 -- Sky Petroleum, Inc. (OTC BB: SKPI), an oil and gas exploration and development company, announced today that it has completed an $8.0 million private placement of shares after receiving qualified subscriptions for over 10,000,000 shares of the company at $0.80 per share. The securities offered by Sky Petroleum have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

Preliminary results indicate that the company received subscriptions in excess of the 10,000,000 shares available to be issued pursuant to the private placement. Details of the shares available for the over-subscription will be forthcoming.

"We are very pleased and encouraged to see the amount of investor confidence in Sky Petroleum and the Mubarek development project," said Don Cameron, chief executive officer at Sky Petroleum, Inc. "As a result of this private placement, Sky Petroleum will have access to the resources required to continue to advance the project."

On July 21, 2005 the company announced it had received bridge loans in the aggregate amount of $2.45 million to fund a portion of the financial commitments of Sky Petroleum's wholly owned subsidiary, Sastaro Limited ("Sastaro") pursuant to the Participation Agreement, dated May 18, 2005, between Sastaro and Buttes Gas and Oil Co. International Inc. ("BGOI"), a wholly owned subsidiary of Crescent Petroleum Company International Limited ("Crescent"), through which Sastaro will participate in an off-shore oil and gas project in the United Arab Emirates. In connection with this financing, the Company issued demand promissory notes bearing interest at eight percent (8%) per annum. The bridge loans will be converted to shares as part of the completed $8.0 million private placement.

The alliance with BGOI and Crescent unites Sky Petroleum with one of the United Arab Emirates most established and successful, integrated low-cost operators with over 30 years of extensive experience in the region. As established operators in the Mubarek oil and gas field for over three decades, BGOI and Crescent bring extensive knowledge of the geological formations and reservoir potential of the Mubarek Field.

Mubarek Development Project

The first commercial oil was produced in the mid 1970's in the Mubarek Field, marking the beginning of over three decades of continuous production. The total estimated cumulative recovery to date exceeds 100 million barrels of oil. Sky Petroleum believes that this represents approximately 30% of the estimated original oil in place (STOIIP) of 275 million barrels and that there are significant additional reserves that may be produced by the new infill well program. The Mubarek Field production facilities have the capacity to process 60,000 barrels of oil per day.

The company expects the first phase of a proposed two-phase infill drilling program into the Ilam/Mishrif reservoir situated within the Mubarek Field to commence in early 2006.

About Sky Petroleum

Sky Petroleum (OTC BB: SKPI) is an oil and gas exploration and development company. Sky Petroleum's primary focus is to seek opportunities where discoveries can be appraised rapidly, and developments can be advanced either by accessing existing infrastructure, or by applying the extensive experience of established joint-venture partners. In addition, the company also plans some higher risk, higher reward exploration prospects. For additional information please visit www.skypetroleum.com»

We get some dilution, but that doesn't matter much to the stock price at this moment.

There's only one thing moving SKPI.OB higher, I believe, and that's the finest manipulation. Manipulation will take this stock a lot higher, as high as possible, then a distribution phase will follow and then a big break on the share price. As a speculator I want to go with the flow, appreciate the job of manipulators and sell when they sell. When will they sell? Just after they've created an active market on the stock, probably much higher than where it is now ... so low volume doesn't bother me, at all, in fact I'll sell just when I see a lot of stock changing hands.

Nothing new on SKPI.OB, still trending higher on extremely low volume, as we want