Bill, if you look at the chart, there was a wide base, April, May and June basically around .70. Similar level, but much wider than the .70 base in Feb.
Prior to that, there was a wide base at .50, so the chart looks better.
I have no idea what is actually going on, but my theory is that if management's words (only Jr. with refinery, production to begin in Q4, added value to be added with Binco spin off) translate into activity (rebuild of refinery, succesful early tests) that more and more people would gain knowledge of operations and desire to buy. E.g., Agra-Simons, commercial bankers etc. down (or up depending on your feelings of bankers) to the guy running the chip truck outside the plant in Cobalt. Each person knows 250 others, right, so one would expect to see increase in price and volume as more people buy into the story.
Someone posted here last week that the action was secondary to a Scotia conference in Montreal. If so, why did stock sell off at time of PDAC in Toronto? If the action is based on the conversion of one or two brokers in Montreal, I don't think the action will be sustained. If on the other hand, the market is now discounting success of The Canmine Refinery and cash flow in Q4, then we should see movement at least up to 1.40.
The intriguing question of course, is that, if they deliver, on time, on budget with The Canmine Refinery, then they will not be just another junior with a fax machine (albeit one with a refinery), but a proven succesful business entity, and the market will then assign a higher value to Werner, Maskwa, Binco.
I've even had thoughts of buying more, (can't for personal reasons), know that some of the long timers bought more at .70. I haven't sold any, if it moves up, will probably borrow money for schools fees rather than liquidate |
