Re: RE002 can you please clarify
in response to
by
posted on
Aug 24, 2008 12:21PM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
I've said this before and I'll repeat - Kry has been manipulated by whoever the buyout company may be. Their motivation for keeping the price down is to save money upon buyout. Buyout of Kry will require well over 100mm shares. If they can save even $1/share, it amounts to a big number. If it costs them a $2 or $3 on a few million shares of either being short(in one house) or a few million shares less from their position(in another house) that's just the cost of buying Kry, but they save $100+mm. On thrusday when the rumor leaked and buying came in and the stock went up to the $1.30+, they waited until volume started to dry up and then they came in with the big numbers and beat Kry back down. The same was true on friday - they were showing large blocks of 50m+ regularly. Without the permit in hand, they have been able to get away with this manipulation because buyers are cautious. With the permit, the caution will evaporate. Retail will jump in and institutional will explode. Part of that instutional buying will be that very buyout company getting as many cheap shares as they can because they know they are going to make a higher offer.
On the brokerage front, it is SOP to downplay a speculative stock, because if retail loses $ they will either go to another broker or have no $$ to buy with. The broker will always recommend a MSFT or GE as a "safe and steady" stock. When the stock goes up a few points they recommend "ringing the cash register" and buying another "safe and steady". At best they will caution against having more than 5 or 10% of portfolio in a spec stock - Its for their(the brokers) own survival not the clients profitability.