Another interesting way to look at things is to take a look at the period of biggest buying for Nesbitt and Sprott, that being from November 98 to February 99. What is intriguing is the average cost of these shares...MUCH higher than current levels!
During that period, Nesbitt bought 1,417,000 shares.
In November they bought 241,000 at an average of $.95
In December they bought 593,000 at an average of $1.27
In January they bought 387,700 at an average of $1.38
In March they bought 222,250 at an average of $1.59
Also worth noting is that Nesbitt went on to purchase 88,000 in March at an average of $1.74. Their buying is continuing as well, purchasing over 150,000 shares in June and July.
My point is this. It would be quite easy for either of these houses to show some "discouragement" selling. Instead, they're continuing to buy more. As I said in my last post, Nesbitt looks to be starting to become particularly keen to buy at these levels (while they can).
Here are Sprott's numbers. In total, from November through to February, Sprott purchased 1,169,000 shares
In November they bought 466,000 at an average of $.94
In December they bought 252,000 at an average of $1.14
In January they crossed 200,000 at a set price of $1.44
In Febrary they bought 251,000 at an average of $1.59
Also worth noting is that Sprott went on to purchase 116,000 in April at an average of $1.60. Their buying is continuing as well, purchasing over 150,000 shares in May and June.
My point is this. It would be quite easy for either of these houses to show some "discouragement" selling. But they're not...not at all! Instead, they're continuing to buy more! As I said in my last post, Nesbitt appears to be more aggressive in their buying at these levels (while they can!).
The average costs of the purchases of both these houses during the November to February period is quite a bit above current levels by about 30-40% (rough estimate). Just my guess, but if there are some big holders buying through these houses at all kinds of levels, even up in the $1.70's, then they are obviously expecting quite a return on their investment. Will this return materialize? I fully expect that it will! <gg>
Regards,
Kevin |
