Luxor fans (and inevitable, although rarer today, foes),
Tonite IMAL will hold discourse regarding the issuance of options announced on the 13th of May and review some facts about this stock's recent trading pattern and the little information which has nolens volens seeped out of the company. Much of this will not be news to a lot of you as the Luxor network is a dense one through which information travels from Vancouver to New York at the speed of thought. And I'm talking POTS, not even ISDN!
The word du jour, no surprise here, is that something significant, will happen soon. Time frame? SOON. Speculation? Always, but this time a pattern is emerging along with "confirming" behavior by LRL. To wit:
1) Company ain't talking. For a guy who loves to talk loudly and lengthily about himself and his company, CEO Lashman is eerily brief, bordering on the curt these days, if and when he returns your call. Budd, who is usually beating the bush for buyers of stock, now almost seems detached, if not disinterested. Verdict? Positive. Refreshing change in behavior. Big effort being made to control hype.
Conclusion: something made them change for the better.. it must be good!
2) After a triple in the last few months, the stock seems to have found a solid trading range at the 2.40-2.60 level. The support below is VERY strong but daily volume is low and the price is not being bid up, giving the impression that the stock is "capped" (Budd's terminology, not mine). Could be a disturbing deja-vu until one learns today that options were issued at 2.50. Verdict? Suddenly very bullish. Conclusion: don't be fooled by the tiny bids or the huge block offers you can observe in the Canada-Stockwatch market depth...they mean little if nothing at all.
3) Which leads us to the issuance of those 150'000 stock options; not a lot of stock, but still issued at the highest ever price of exercise in this little penny-stock's history, and at a minute discount to the 52-week high. WOTS (word-on-the-street) is that these options are going to parties responsible for whatever significant event is coming down, with whatever is being offered at 2.60+ thrown in as bonus "free-trading stock". If this is true, then IME, whoever is accepting options today at this "high" price has got to be convinced that this puppy is going to break all previous records by a length and a half.
If this is NOT true, then why would Luxor bother with the time and expense of issuing these few options now, at a high price, 2 weeks prior to the AGM and barely 3 months after issuing 850'000 options at a buck Canadian??
Your comments and opinions are all welcome.
IMAL |
