Here is OTC report:

http://www.otcjournal.com/OTCJ-Oil-a...

The market is improving nicely as oil starts a corrective phase after one of the most prolific parabolic runs in the history of markets. Oil peaked at nearly $150, and closed at about $124 today- so much for the idea that the price of oil was simply a function of supply and demand. In fact, it was a function of supply and demand- but supply and demand for the futures, not the actual stuff.

That's ok- it's the way markets work. Here's an idea- Congress- Butt Out. Just let the market work, and it will work. I have been saying all along there is no historical precendent for a continued parabolic rise, and oil won't be anyting new. All we done is given back about two and a half months of gains. It was a crowded trade, and once it cracked, there was going to be a crowd trying to get out all at the same time.

Now that oil has cracked, where to from here? I can't show you a chart because I am travelling. However, if it could, it would suggest oil will probably drop into the $120 range, trade sideways for a bit, and begin trading higher again. If it follows the pattern of other historical unsustainable parabolic rises, it will not regain the former high, then really get clobbered.

At some point the market price of oil will quiet down- perhaps somewhere in the $100 to $120 range, and stabilize. We will adjust to the new reality at the gas pump, and the US economy will then continue to grow- over the next 10 years Trillions will be invested in alternative energy companies, and it will become the next bubble. More on that for some things I'm planning for the future.

Along with the major correction in oil has come a big pullback in natural gas- from about $12 MCF to about $9 MCF. That's a 25% correction. Almost perfectly in concert with this correction has come a correction in the price of PLTG- from about $.165 to $.135 - that's about a 20% correction.

Is it justified? I suppose one could argue that the value of their reserves has dropped by about 20%. However, one could argue the value of their reserves was not priced into the stock yet .

Perhaps the company hasn't earned the right to get a fair valuation from the markets. After all, they have just become a producing company in the last 30 days , and the market hasn't seen enough to price in the full value. It needs some hard numbers in the rear view mirror, and the stock is clearly a bit sloppy. As the company delivers hard numbers and more investors become believers, the stock should firm up and stick .

As you can see, despite the rather schizophrenic nature of the chart, it has given back a nearly perfect 61.8% retracement of its last big gain. If this $.125 level holds and the stock rebounds , this will turn out to be an excellent buy . If the stock gives a lot more ground, it will be a major negative technically speaking.

Today, just after the market closed, PLTG put out a press release specifically designed to give investors hard numbers to chew on. The company announced it generated $75,000 in revenues last week , which translates to about $3.9 million in annual revs . Moreover, PLTG estimates new wells will begin producing in the next 30 days which will double the existing production .

Personally, there's other information I found far more interesting. Apparently, this company has a pretty big following in Germany, and investors visited their Kentucky natural gas wells recently. Those investors posted some of their footage on Utube, and it's available for anyone to view.

Simply visit http://www.youtube.com/PlatinaEnergy... There you will find several video clips which provide an interesting look at their properties and equipment .

The stock should rebound now. The current $15 million market cap seems low to me if these numbers continue at their current pace and improve .

Time to buy!!!

Long and strong on pltg!!!