Where will it go from here? Possible scenarios:
1: It will stay where it is for a long time because the VSE & other 'small cap' stock markets are in the BAD books for a lot of people...no matter what the news is.
2: It will creep up the price ladder (no explosion) as news releases start to come out concerning their recent drilling programs. I did hear from another source (outside of the IR department) that they were NOT going to release any news (ex: assay results, company plans) for at least a week, because they wanted to make sure ALL the shareholders knew the company was trading again. A few other shareholders I've spoken to are glad the Albania deal was dropped (not I), because they felt ownership in a foreign deal would cause too much uncertainty and unnecessary fluctuation (basically, any deals with foreign governments under turmoil are viewed with a lot of scepticism these days). These other shareholders are also extremely happy with the King Bay deal and see huge benefits (results & income) coming from a property that is 80% owned now, instead of just 40-50% owned.
3: It will be interesting to see how they get the PP they are looking for (2 to 3 million). I've mentioned before, these guys have deep pockets and may try to complete the whole process themselves (which would mean an inside type of PP). Therefore we may see the price stay at these levels while they figure out the best deal for themselves. They did, after all, finance the WHOLE drilling program out of their pockets while the company was halted by the ASC for these eight months. On the other hand if they try to go outside for their PP then we may see a jump up to the mid-50's, mid 70's (anyone's guess) in the hope of not diluting the stock too much (the present management is quite capable of supporting the stock to these levels if they ever decide to - obviously this scenario would be of better benefit to present shareholders if/when company starts to deliver the goods). I do know that management holds a large percentage of the shares of the company already and I'll see if I can get some specific figures for people over the next week (concerning shares outstanding, diluted, owned by management, etc...if others can get this information sooner please post it !!!).
These are strickly guestimates on my part. Please do your own DD and add your opinions to this thread.
Good luck & good trading |
