.

From the chart, its been in "this pattern" for the whole of May :-)

Ouch... I bought in yesterday at 183p and now 169p.

bouncing now....

maybe not... chart not correct.,.

It's 163p now. Pretty bad.

i believe this stock is almost entirely owned by PIs rather than institutions ..... that being so, it is very likely that many are feeling the pain is too great to bear and/or are being forced to sell either due to called margins or stop-losses .... there will also be a number of (heavy?) bear positions .....

however, it seems to me that though the last rns disappointed, it was scarcely a disaster and there is no reason to believe that the bentley field is not highly commercial .... it follows, or at least should(!), that the fall is or will shortly be overdone and buyers will come back ..... for what the chart is worth (bugger all in this instance) i don't see much if any support above 120, which is not to say sp will actually fall that low

5% spread ?

it's an MM-only stock albeit that there are 8/10 of them (colluding!) ..... sometimes the spread is indeed +/-7/10p but at the moment it is just 1p

Fundamentals and common sense will kick in at some pointits a bloody bargain at the price its a company worth 830mill on its assets not 322 mill as it stands a correction must happen at some point.

there is something fundamentally going on in the market that I confess I don't understand if you believe the experts that we are not going back into recession.

As an example of what I'm trying to express, take a look at the charts of FPM, AFC, CNR, GFM, MATD. PELE to name just a few and that doesn't include the real tiddlers which have been hammered as well.

ie it is not stock specific just fundamentally the market.

Had a small punt @163 out if it breaks 140.

fantastic opportunity here again - bought 150's out now on my dt - that was all i meant by pattern - done this several times now - if it drops again to 150s today i am back - but i have noted that each drop is getting lower now in the 150s but generally recovering then down again - this is madness as oil still there but pis just too impatient imo - make on the drops here for now - and keep long if you have any

It's recovering now. Phew!

hyleo - of course it will dont worry....

interesting read below - another reason not to sell stops and why i expected this today (and prior to today) along with other reasons:

Q. But how do Market Makers work exactly?

A: Note what follows is unofficial but it comes from an informed source -:

To lubricate their transactions, market makers need a supply, or inventory of the securities they support. This can either be real certificates, or via a process called 'stock lending' (don't worry about THAT one yet - it basically means they borrow stock or "pretend" they have it). Once you have an inventory of stock, and the concept of 'spread' (or 'edge'), a marvellous opportunity opens up. The average price at which a market maker accumulates a security and the average price at which he distributes it are going to be different. Add this to the fact that the market maker sets the price tick by tick, and boom! A license to print money. Observe closely, this is a good trick.

I, as a market maker, decide (for no real reason, or perhaps because there has been some trivial news about them) that stock in ABC Corp is my plaything today. I don't have much of an inventory in that particular security, so what do I do? Mark up the price so external holders will sell me some? No. I mark the price DOWN. Oof. Some external parties see this as a buying opportunity, and as I am a market maker, I am obliged to sell them the security at the new, lower price, meaning I am even shorter on that security.

Sounds mad, doesn't it? But it doesn't matter, because I mark the price down again. And again. And I keep on doing it till I hit the stops of external parties who are long, but weak, or the limit orders of people who are short. As a market maker, I know where these stops and limits are. I own the book, after all.

Ordinary Joe Public mostly think the market follows the laws of supply and demand, follows trend lines or fibs etc, which means they all tend to put their stops in similar places ('resistance' anyone? 'support'? That's right, it exists!). This is a game of chicken, really, and YOU will ALWAYS crack before ME (the market maker), because I can take the market to zero, or to the moon. You have to meet a margin call.

So now I am a market maker who has a LOT of supply of ABC Corp, which has fallen significantly in price. Looks like I'm holding a plum, doesn't it? What do I do next? That's right. I mark the price up. And I QUICKLY mark it up to the point at which the current price is ABOVE my average purchase price. So voila. I'm in profit. In a fairly big way. All I need to do now is unload this stock to you over a period of time at a price above my average, and I am rich. You, of course, sold it to me on the way down.and are regretting it because it is probably already way above where you exited (strange isn't it, how the market seems to 'hunt your stops', and then reverse?!) If I do this right (and it is an art form, for which successful brokers get paid multi-million dollar salaries), I create the illusion that the market is totally random, and is being driven by YOU, whereas I am simply a fee paid middleman, facilitating your activities. Even worse, I give you the vague impression that you are actually pretty good at it, and if you can only get your stops a little more accurate, you will stop losing money!

As I mark the price up, external parties start to worry they will miss out on this growth, and begin an ABC Corp buying frenzy, allowing me to unload. Everyone is happy. Most of the investing public are sitting on unrealised (imaginary) assets, while I am converting worthless shares into hard cash.

So, I have made a real, cash profit. You are sitting on an unrealised paper profit. We are all happy. Until I repeat the process and stop you out. Again. Are you getting the picture yet? In fact, once I have built a little momentum in a particular direction (long OR short) I can let you prolong it, settling simply for my spread profit. I know that eventually the run will peter out, and then I can force it the other way, easily dislodging those who took a position too near the end of that particular phase.

Let me paraphrase. When the market is zooming up madly, market makers are actually selling (usually stock they don't own!) in preparation for a subsequent managed fall, during which they can buy it back for less (i.e. make a profit). When it is crashing down, they are actually acquiring stock, in preparation for the process of selling it back to you at a higher price (i.e. make another profit).'

this kinda covers the basics only - lol

kerrrrchinnnnnngggggggg!

Without being arrogant, I could have told you most of that and I repeat what I said weeks ago that in most AIM stocks there is no market at the moment which is one of the reasons why there is no momentum upwards in the majority of MM stocks. For whatever reason, all momentum stopped about 5 weeks ago (there are of course exceptions - eg PDX which rose from 300 - 400p Friday and Monday which I think was caused by shorters closing)

dd - no problem - yep i've also known about this for a long while - if i have something that can help fellow investors / traders just like to share - they will either take note or ignore it - but i hope in a little way it may help

many reasons aside from above for many stocks being as they are currently of course - even the time of year - almost always will fall a bit flat around now till at least after august for no other reason than the usual

just because a whole shed load of companies way under valued right now dont mean they are bad all of a sudden - many parties will take the opportunity to maximise the general bad feeling created thus depressing sps for really absolutely no reason lol!

to anyone with spare / free cash now and the next few months will bring out real bargains - dare i name just a few, otc, mxp, rrl, rrr (rgm / ggp), xel, sres, gkp, bzt, et cetera - or of course shorts et cetera whatever ones strategy

always keeping an eye on the good old airlines courtesy of super volcanic country iceland - yeeeeeeeeeeeeehaaaaaaaaaaaaaaaaa

i am sure most in here are aware anyhow

gl

tsx -16% catching up with over here.

Results for the 3 Month Period Ended March 31,2011


The first quarter of 2011 has enabled the Company to progress its plans for the First Stage Production ("FSP") programme on the Bentley field, with the signing of the Rowan Norway harsh environment, deep water jack-up rig and the planning that has been undertaken with a number of the Company's contractors and service providers to support the use of the rig in the field for the FSP.



In parallel, work was undertaken with respect to the recently announced reserves assessment report, together with the field development plan for the FSP that is expected to be submitted to the Department of Energy and Climate Change shortly.



The Company's unaudited Financial Results for the 3 Months Ended March 31, 2011 can be found at the following link:



http://www.rns-pdf.londonstockexchange.com/rns/2106H_-2011-5-24.pdf

http://www.proactiveinvestors.co.uk/companies/news/28593/xcite-energy-narrows-q1-loss-as-it-prepares-for-bentley-oil-field-production-28593.html


Xcite Energy is preparing for first stage production on its Bentley oil field in the North Sea by the end of 2011
Xcite Energy Ltd (LON:XEL, CVE:XEL) has narrowed its loss in the first quarter as it prepares for first stage production (FSP) on its Bentley oil field in the North Sea by the end of 2011.

In a results statement for the period ending March 31 2011, it said it made a net loss of 13,000, compared with a loss of 265,000 a year earlier, due to foreign currency gains made in the period on currency exchange transactions entered into in the normal course of business.

The cash balance as at March 31 was 30.2 million, compared with 36 million as at December 31 2010, with the decrease due to the ongoing working capital requirements, principally the settlement of outstanding 9/3b-6 and 9/3b-6Z well creditors from the year end.

As at the date of this MD&A, there remains a unused Standby Equity Distribution Agreement (SEDA) facility of 56.25 million.

Taking into account the unused SEDA facility and the groups financial obligations, Xcite is forecasting that it has sufficient financial resources for working capital for the foreseeable future and to continue the planning of the initial expenditure associated with the FSP of the Bentley field.

The SEDA was initially set up with Yorkville Partners YA Global Master fund back in September 2010, and it has since been extended on a number of occasions.

Last week, the North Sea oil firm hired high profile corporate brokers and financial advisers, with major investment banking firm Morgan Stanley and Oriel Securities a respected institutional broker as its new joint corporate brokers.

Notably it has also hired Rothschild - a private investment banking group renowned for its track record in mergers and acquisitions - as its new financial adviser.

Earlier this month Xcite reached a major milestone in the process towards starting FSP this year when a third-party reserve assessment report (RAR) was completed for the core area of the oil field development.

The report gave important reserve and resource figures for the FSP and the second stage production (SSP) respectively. At the moment only the FSP has reserve status oil, with 22 million barrels in 2P reserves.

According to Xcite, the reserve assessment report demonstrated a material increase in the projects net present value (NPV) compared to the competent persons report (CPR) that was completed in February 2009.

It valued the best estimate case for the FSP and SSP at US$396 and US$961 million respectively, giving the core area a combined NPV of US$1.35 billion.

Xcites next development milestone will see it submit a development plan to the UK Department of Energy and Climate Change for both the FSP and SSP.

Xcite has confirmed that there are no remaining technical contingencies for the SSP. Because of that analysts are expecting the SSPs contingent resources will be converted to an equivalent volume of reserves once Xcite moves on to this phase of the development.

This means that the staged development will effectively have total 2P reserves of around 115 million barrels, analysts pointed out.

The company has already hired a jack-up rig and floating production facilities that will be used in the FSP.
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Wonderfully BLUE today.....last purchase in profit.....Phew!!! KEEP GOING.,.