To all you Bravehearts still checking in periodically:
Recently, one of you wrote me a private message asking what was going on with Luxor, if anything, that would justify time spent following this stock on a daily basis. In light of where the stock closed today(1.50), I think it might be timely to share my response with our public audience, if this thread still has one.
Many of you still long LRL will have noticed that the stock has traded in a (relatively) narrow range going from 1.50 to 1.85 for the past few months, supported on the bottom but unable to break out on top. Those of you on Canada-Stockwatch will also have noticed the ubiquitous presence of the same two houses which account for a majority of the trades, buy or sell. This lack of news, apparent lack of progress, missed deadlines etc.. all point,IMHO, to some sort of controlled accumulation of stock in anticipation of the "big" deal which Luxor has been trumpeting since May of this year. But last week's news release sounded more like Luxor counting chickens before they hatch than a serious show of progress. In addition to that is the rumour that a pack of options expired early this month and will be reissued some time soon. I believe the exercise price of such options is set based on a 10-day average of closing prices, so this too can influence the performance (or at least the close) of a stock in a given period.
My take is that unless the stock breaks out to the bottom (below 1.45) or to the top (above 1.90) or experiences a solid rise in daily volume, it's not worth following day-to-day.
Speaking to the company, they are very excited about the future, alway have been, and they have made great efforts in spreading the oral word to investors that things have never looked brighter. Several news releases are expected to be issued in the following weeks leading up to the "BIG ONE" in November. Luxor rates their stock a "strong buy".
Til next time,
IMAL |
