I grilled the company today about what was going on this past week. Everything was going so strong, and then it seemed a period of weakness dragged the share price down to the $.15 level for the announcement.
It seems the company stopped promoting the stock to stabilize the share price just before the announcement. Then they found out that the share price movement would be closely watched. They presented the deal as though it was a normal extension of their business, but I think the exchange didn't buy it. So if the price zoomed after the announcement, the market would obviously have judged it a big change. If there was no price jump, it meant the market accepted it as normal business.
When I talked to Lawrie yesterday he was some pissed off he couldn't do what he was paid to do and blow the company's horn. Doug Maclean enforced a "No Promo" rule, the last thing he wanted was extra scrutiny at this level before other announcements are made.
The virtual standstill over the last 2 days has satisfied Doug, and the promo machine is being started.
I think that now we will see some positioning by the first level of promoters. The insiders families, stock brokers, newsletter writers, the "inside circle" while everything is put into place. This should snap the share price back up to the previous level. Unless of course too many get pissed about the consolidation and they sell before that happens.
These are all just my initial reactions, and it is already a long post. I will attempt a financial analysis now that it is announced and MKD can share their figures. I hope to get more of that information tomorrow, and post it over the weekend.
But here is a little tidbit Lawrie shared with me. There is a broker in Seattle who buys 750,000 disks a year from Texas. This one customer wants to buy all his disks from Vancouver, which is enough to fill about 40% capacity of a 1 shift operation.
So hang in there, and base your decisions on a DD.
Ted |
