There was some pretty good volume today as the price rose 26%. What I'm hoping is to see a support level built in this range before the price moves upwards again, but I won't complain too much if the price keeps moving upwards. ;-)
The average trade is still fairly small in volume, so if someone wanted to acquire a large position, it can't happen all at once on the open market unless that person wanted to keep buying upwards in price. I spoke to Lawrie at IR and asked him about the size of the public float. It's somewhere between 4 - 5 million shares. The number of shares issued is 8.8 million, so the rest is held by management and other types of investors.
It sounds like the CD manufacturing venture is doing excellent right now. They have interest from potential clients other than Spinner Records, which is a good sign that there's demand for this type of manufacturing. They're the only company in Western Canada that'll be manufacturing CDs, CD-ROMs and I think DVDs. There are two other such companies in Canada, but both in the east.
Regarding the manufacturing equipment order, they're in excellent shape to order soon. I'm learning about this industry and I wasn't sure what was involved in CD manufacturing, but it looks like they're doing everything from reproducing the CD, jewel boxes, printing the sleeves and shrinkwrapping it. They're buying machines to do all of it.
Perhaps more people can call IR (1-800-338-7844) , see what else we can find out and share the findings. Personally, I'd like to be able to collect enough information on the CD manufacturing (capacity, revenue, expenses, etc.) and build an earnings model so we can see all the numbers. |
