SLE

Hi Elena,

I must apologise if my post came across as critical of you or anyone else - that certainly wasn't my intention! There's only one person responsible for my trade decisions and that's me of course!

I wouldn't expect you or anyone else to know of such news prior to its release. The chart had a definite breakout and closed pretty much at the high of the day so I felt very comfortable with my earlier entry. I did expect it to drop back to around the 9p mark before continuing but there you go.

In fact, On Sunday night it did occur to me that Friday's action had all the hallmarks of some major news coming and, knowing a bit about SLE, I did wonder if a T/O bid was coming so was not surprised by Monday's news (or the sell-off).

I'm also familiar with AUL and there's no doubt in my mind that this merger is a very positive move - there is a lot of synergy there - and the long term opex savings will be significant. AUL has plenty of acreage here in my home city of Poznan and SLE has the Nowy Sol concession 100 kms or so east of here as well as the Gdansk ones. It makes perfect sense for these two companies to merge and I still wouldn't be at all surprised to see PGNiG make a bid. That is unless Kulczyk gets them first - he's made public his desire to acquire as much of Poland's gas and oil production as possible (he also owns, amongst many other assets, Poznan's city centre Stary Browar shopping centre, voted world's best in 2005 I think, within which his wife owns one of the top 50 small boutique hotels in the world, the oddly named 50/50 Blow Up Hall, which comes complete with bulters and an iPhone rather than a key to help you locate your room).

The new SLE is predominantly not exploring as I understand it - the oil and gas is known to be there - so it's simply a matter of monitisation through production and they have very experienced partners as you say (includng PGNiG).

So, fundamentally I think it's a great move. Chart-wise, I think yesterday's hammer and today's action suggest that my Friday purchase could well be in profit, as you say, before year end.

Maybe I could request a share certificate and turn up at the sites brandishing it and demanding to be shown around "my" company's assets?!...

Jackozy,

I had no idea about a possible merger. San Leon have had farm outs with Genel and Cairn that brought in about $2m and left them with 8% and 14% of off shore Morroco licences.

The merger took us by surprise and undoubtedly there was a fake rise leading up to the announcement.

It is a company that is currently drilling and has many different prospects including Ireland, Morroco and Poland.

I know you only worry about the charts these days and it is good that the chart has not turned ugly after Mondays fall.

I think we have a good chance of a profit between now and year end.

This might not be too bad now:



dl.dropbox.com/u/20815047/SLEdaily14_11_12.gif

Yesterday formed a hammer at a level which has had lot of volume in the past. It also looks to have formed bullish RSI and MACD divergences. I think it's going to need to make a new high above the hammer top before we can get too excited though.

Maybe not the end of the world though for those, like me, who got caught out in the false breakout...he said hopefully!

remo,

Some hot money has exited this share because the news came.

The SP hit a low of 8.02p at 0815

But since then on the 15 minute chart it is ticking back up nicely.

I know RNS can upset the chart, but this news is not disastrous and the uptrend could continue.

It is a complex deal and the real analysis will not be completed for several days.

I would exit if 8.00p is breached. But until then.

Penny shares...
That's the downside of these.
Too volatile .

Not so sure about that R