Realist,
I agree with your post and it is wise for everyone to keep a certain amount of skepticism. I am surprised Vinny (Handshake) has waited till now to vent his frustrations. We are close to either hitting the mother load or to find out we have a nice copper mine instead.
Vinny and everyone who has been in pennys for awhile (20 years for me) know that in the majority of the times when a company has to create new shares, the price does fall as you have a certain amount of dilution. People sell out of concern and MM's take advantage of the greater float and short to increase their profits knowing this is usually a negative sign for the company.
The funny thing with MDIN and NPEC (to a smaller degree), the price of the stock has gone up while the most recent shares were issued. Strange but very encouraging that both companies are doing the opposite of what you might expect.
MDIN climbed from 7 cents to 40 cents (at 40 cents for one day) and has traded between 28 cents and 35 cents for over two weeks. This tight range usually indicates an accumulation period. At 30 cents, you may have a few average investors buying blocks of 5-10-25,000 shares, but we are seeing a number of much larger blocks coming in.
50, 100, and 200,000 blocks equals big money at 30 cents. I do not know enough to say it is Smart money but it is obvious to say that the big money feels good about what is about to happen and is comfortable with the number of new shares created to fund the company's projects.
As Vinny would say hmmmmmmmm.
I personally have a lot invested in both companies and was fortunate to get in when the share price was low but even at the present price, I still think it is a good speculative play. I am not saying new investors should mortgage the house but if you have a few hundred or thousand that is in your speculative account, then you may want to consider either or both of these companies.
Finally, these two companies will not move to the $1.00 plus level because of anything we do, say, or invest through this thread, they will move big time if the majors know we have something and make MDIN an offer. Then Vinny and the rest of us will enjoy the really big pay day.
Thanks to Realist, KMT, Mike Gold, and the others who have spent a lot of time keeping us updated.
Ken |
