The stock went up on high volume and is settling back down on low volume.
This is ordinarily a positive sign, although I stand by my prior
statements that this stock is not a technical play. Naxos is a fundamental
play: either the gold can be economically recovered, or it can't. Period.
As far as volume is concerned, we all should remember that volume is
overstated on the otc/nasdaq. Volume today was 91,600. If naxos was
trading on the New York Stock Exchange, that would mean that 91,600 shares had
exchanged hands. However, on the otc/nasdaq, if you sell a share, the market
maker buys it, and then if he resells it, it counts as another transaction.
In other words, if Doug sells 1000 shares, which Mark then buys, that counts
as 2000 shares volume, although on the New York Stock Exchange, that
would count as 1000 volume. So, only 45,000+ shares traded hands today.
If the stock goes down on such light volume, I really do not care. I just
want to hear good numbers from Ledoux. |
