Petrominerales Ltd. (PMG) lost almost 18% on Friday morning as someone dump a lot of shares. Analysts blame it on the report late Thursday that testing of its La Colpa oil well in Peru has been completed and no hydrocarbons were found.
Today's selloff looks like a gross over-reaction to me. The rest of their operations update was full of good news. They are drilling high risk/reward wells in South America. You are going to get a few dry holes.
Read the operations update below:
http://finance.yahoo.com/news/petromine ... 33102.html
Based on my preliminary forecast for PMG, they should generate over $6.00 CFPS this year on EPS of $2.50 to $3.00. PMG is on our Watch List and we will publish a company profile after we see Q1 results.