We’re heading into the home-stretch of 2012, and after a super year of huge winners, we are ready to ring in 2013 on a high note. As promised, today we have a new interest that has been catching our attention that we will share with you now:
Abby, Inc. ABBY
Our new pick, ABBY, strikes us as a prime bottom play, having only just hit its all-time low on Monday. We are eager to track this stock as it searches for its base, as a properly timed trade could result in some substantial gains on the bounce.
Before we talk any further about the chart, let’s take a look at the company behind it- ABBY is the first domestic oil company that we have looked at in quite awhile, and it appears to be one that is poised for rapid execution of its current strategy. The company is actively engaged in the development of oil interests in Richardson County, Nebraska, the process of which is being aided by its partner, Black Star 231 Corp.
One of the key aspects that has our expectations running so high, is the fact that initial findings, along with historical record of the region suggest that the land optioned by Abby could contain several million barrels of crude. Adjacent plots have produced such amounts, and if plans to develop up to 30 producing oil wells on the company’s most promising project, the “State Line Prospect” hold up, the benefits for ABBY shareholders is apparent.
All told the State Line plot entails 2100 acres, all of which are controlled by Abby, and is named for its physical location straddling the border of Nebraska and Kansas. Evidence that oil is trapped in the sandstone formations that lay beneath the State Line Prospect is found in 3 wells drilled on the flank of the prospecting zone, as well as being alluded to in preliminary geological assessments.
Immediate plans call for two initial wells to be drilled this January, with estimates on expansion to the full 30-well capacity coming within the ensuing 11 months. However, the company expects to recoup the costs of the first 10 wells inside of 8 months, thus the remaining 20 will be built out from the resultant cash flow.
When it comes down to it, we simply can’t afford to turn our attention away from ABBY as the company follows through on its promising ventures. We will be glued to the news wire for further updates, all the while monitoring this bottom play for any signs of an impending run.
On the chart, we can see an RSI that is recently coming off of being heavily oversold, as well as a converging MACD indicator. We can also see the blue bars on the histogram appearing to be gearing up for crossover to the bullish side. Couple that with a PPS on par with the all-time low acting as its support level, and it would seem that now is a really good time to take a close look at ABBY.
Here are some links to a couple of ABBY charts: 60min, 1-day.
We’ve also taken the liberty of preparing a video chart for your viewing convenience. Click Below.