Giken Sakata

Giken Sakata: Counter was featured on Shares Investment yesterday, citing its interesting business model, limited exploration risk, short payback period and cash flow generative operations. In addition, the report noted that Giken's business model is highly scaleable and is likely to see growth in the next couple of years. Giken's oil produce is contracted for sale to Pertamina, Indonesia's state-owned oil O&G company, providing stability to its operations, unlike other oil & gas plays which may be extremely vulnerable to short term swings in oil prices. Technically, Giken has been trading within the range of $0.315 – $0.360 since 9 Jun 14. It seems to be testing the support of $0.315-0.320. A sustained break below $0.315 points to a measured technical target price of around $0.275. However, there are multiple levels of support from $0.300 – 0.310 due to the placement price at $0.300, Fibonacci level and 100D EMA. Resistances are at $0.330 – 0.335 / $0.350 – 0.360. A break above $0.360 negates the slight negative bias of the chart. Article can be found at http://www.sharesinv.com/articles/2014/10/06/giken-potential-oil/