Gediminas Jasionis
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Compton Petroleum Corporation (TSE:CMT) (PINK:CMZPF) Remains Beaten Down

by Gediminas Jasionis Jun 8, 2011
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cmt_chart.pngTraders of Compton Petroleum Corporation (TSE:CMT) (PINK:CMZPF) embraced the recent massive share price collapse and seem unwilling to call it a bottom - the price action has shown little affection towards a possible correction.

CMT stock stayed down throughout Tuesday, still unable to recover from the nearly 50% collapse that occurred during the first trading session of the week. The stock hit a new multi-year low and currently trades at 11 cents - roughly 100 times lower than three years ago.

The sell-off was a reaction to the first quarter results, which were published on the same day, June 6, 2011, before the trading session.

7compton_logo.jpgThe company's performance was impacted by lower natural gas price and it fell directly on their top line, worsening the situation that was already questionable due to other management decisions.

• Production cuts ranging around 25% were a result of a partial assets sell off;
• Revenue was down 40% to $42.7 million;
• Q1 profit was $2.5 million, or ten times lower than over the same quarter last year.

The management stated they will attempt to focus more on the liquids-rich areas and oil opportunities since the natural gas business is slowing down.

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