 |
Lightning Strikes
Again- Energy Power Systems (OTC BB: EYPSF) Tears Up the Charts |
|
They say one picture tells a thousand
words. Alongiside is a picture that tells it all. Energy Power Systems
has been tearing up the charts since announcing a new contract in the M&M
division back on October 4th. The stock has exploded on the highest volume
we have seen. Lightning has struck again on this stock, and it has made
a new high for the year. Congratulations to shareholders who stuck with
this one- you are making a great return in a brutal market.
We couldn't be more excited as we
know many of our members are shareholders, and you should be making money
regardless of your entry price. Where it goes from here is anybody's guess.
The chart tells us the stock should be accumulated during periods of low
volume and quiet corporate activity.
However, stocks making new highs
on high volume often go even higher. Time will tell and each individual
needs to make their own buy or sell decision. The chart shows a stock who's
lows are getting higher, and highs are getting higher. This is a bullish
pattern which will probably continue to repeat itself if the company continues
to grow. It also shows a stock that is a good candidate for a sell on big
volume surges as demonstrated by the previous peaks. As a reminder- our
target price in the original February profile was $5.50.
We cannot explain the meteoric rise
in volume. This is far beyond our expectations and a welcome surprise.
Whether the stock continues higher is anybody's guess, but we know this
stock has a much larger audience than any point in the past. Therefore,
volume and liquidity should improve from here forward.
Over time stocks tend to take on
a personality. This stock is a bit schizophrenic, but it can be depended
on to surge every few months. We are in the middle of the fourth major
spike this year. So if you don't like the price, just wait.
 |
News
Today- May Help Explain the Recent Activity |
 |
Just prior to today's open, Energy
Power Sytems released information concerning new drilling programs
in natural gas rich Alberta. Mentioned first is the drilling site in the
Farrow region depicted in the grid map along side. Note there are eight
potential drilling sites identified, and the company owns a 31.5% interest
in these wells as disclosed in the press release. 3D Seismic results indicate
this is potenially rich in natural gas.
The second new drilling site mentioned
in the press release is the Olds area of Alberta depicted in the chart
alongside. Once again, potential drilling locations are shown in green,
and the geologic formations also revealed. Energy Power has an initial
25% interest in this property before pay out.
The third potential drilling site
mentioned in the press release is the Cherhill area of Alberta. The company
has a 30% interest in this property, and only one potential drilling site
is revealed on the grid.
Energy Power plans to invest
$900,000 in these new drilling programs during the month of October alone.
Results could be known anytime over the next 2 to 6 weeks. The maps were
provided to us by the company in order to maximize shareholder understanding
of the company's drilling and exploration program.
The market is very excited about
these new Alberta finds, and hopefully results will not disappoint. We
will know over the next several months.
Here is the complete text of today's
news release for your review:
Thursday October 11, 9:14 am Eastern
Time
Press Release
SOURCE: Energy Power Systems Limited
Energy Power Systems Limited
Expands Oil & Gas Exploration With Multi Well Drilling Program
TORONTO--(BUSINESS WIRE)--Oct. 11, 2001--Energy
Power Systems Limited (OTCBB: EYPSF - news; www.epsx.com; ``Energy Power''
or the ``Company'') announces that a recent 3D seismic program in the Farrow
Prospect, Alberta has identified a valley fill channel complex that covers
approximately 1/2 a section of land (320 acres). Re-entry of a previously
logged and cored well bore has now commenced to drill out cement plugs,
complete and test the potential of 10 metres (approximately 32 feet) of
oil pay in the Glauconite Channel. If successful the re-entry well could
be first of a multi well program in the Farrow Prospect. Energy Power holds
a 31.5% interest in the Farrow Prospect.
Energy Power has now agreed to participate
in an exploration program encompassing 6 sections of land (approximately
3840 acres) in the Olds area of Alberta (the Olds Prospect). The initial
program will drill 3 prospective plays of 2 sections each (1280 acres)
(a Test Well and an Earned Section). One well is a multi-zone natural gas
prospect and the other two Test Wells are expected to be Viking gas by-pass
pay zones. Drilling of the first Test Well is imminent and the other 2
Test Wells are anticipated to spud by the end of October. The Company has
a 25% interest before payout and a 12.5% interest after payout in each
of the Test Wells in the Olds Prospect and earns a 12.5% working interest
(Earned Interest) in an additional land section by drilling each Test Well.
If successful the program operator anticipates further drilling of the
3 Earned Sections in the new year.
The Company has a 30% interest in
a prospect in the Cherhill area of Alberta. The Cherhill Prospect indicates
a 2.5 metre (approximately 8 feet) natural gas pay zone in the lower Belly
River formation. The spudding of this well is also expected by the end
of October.
The multi well program is expected
to cost up to $900,000 depending on completion costs and will be funded
from current working capital.
About Energy Power Systems Limited
Energy Power is an integrated energy
source and service company operating as an Oil & Gas Division and an
Engineering and Offshore Division. On October 4, 2001 Energy Power announced
that its Engineering & Offshore division was awarded a $3.0 million
contract to rebuild a process heater and associated structural steel fabrication
and installation at North Atlantic Refining Ltd. Accordingly both operating
divisions are active in the energy sector.
The Company has approximately 7.3
million shares of common stock outstanding.
For further information contact:
Sandra J. Hall
Vice-President Corporate Affairs
Telephone: (866) 230-3305
Certain of the statements contained
in this news release are forward-looking statements. While these statements
reflect the Corporation's current beliefs, they are subject to uncertainties
and risks that could cause actual results to differ materially. These factors
include, but are not limited to, the demand for the Corporation's products
and services, economic and competitive conditions, access to debt or equity
capital on favorable terms, and other risks detailed in the Corporation's
Form 20-F and Annual Report.
Suite 301, 2 Adelaide Street West,
Toronto ON M5H 1L6
Telephone: (416) 861-1484
Facsimile: (416) 861-9623
www.epsx.com
--------------------------------------------------------------------------------
Contact:
Energy
Power Systems Limited
Sandra
J. Hall, 866/230-3305
|
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|
