Sterling Resources (SLG.V)

Just broke its 50 day moving average to the downside. Had hit a spike and you never buy into a spike. For an uptrend, it must not hit its low that it hit in March and must make a higher high.

Has 10 parcerls of land offshore in UK. 3 of them are close to being farmed out. Between now and the end of '06, if they can get 3 wells drilled and they have a 30/50% piece of it, it can have value of $5/10 potential. Romania is going to become and ECM country and they have no national oil company. Feels their 1.5 million acres concession is very valuable. A 3 year story.

Going to do offshore UK drilling and is going to farm out the plays and keep a piece of them. Also have on-land in Romania where they have 1.5 million acres.