Re: 2 new press releases available - some thoughts
in response to
by
posted on
Apr 23, 2008 04:00PM
Drilling about to restart at La Fortuna, 1st resource calc being worked on
I can understand the sentiment reflected in your post; the company is (from what I understand) well down the path to implementing a market awareness / promotional campaign. What that equates to in terms of results is not a given though. They spent 2 weeks in Europe last September and it equated to very little "in the market"; having said that, there were mitigating circumstances at that time.
We are right on track for a fairly substantial whack of news as well, as last year at just this time we started seeing the results from the drilling begin to show up. The 1st "results" to hit so far were those samples from the drill pad location; while no one is going to suggest that we get overwhelmed by the release of sample assays, it is a good indicator that our timeline for drill results, should roughly mimic last summer (NA summer).
The way things look on the market at the moment is that we are getting hit by some selling that is happening "with purpose"; the last big sell was a market sell for 50,000(+) shares to close the day. That occurred on a day when there was already some modest increase in volume and an apparent upswing in sentiment; yet the sell was executed "at market" with very little time left in the trading day, with no effort or apparent intent to sell into the buying. This tends to suggest either an emergency sale (cash required NLT Friday) or a sale executed with complete intent to whack the share price, which is probably the most likely since we are not talking month-end or anything like that.
If the purpose of the sale was to whack the share price, it did succeed; the 2 most likely reasons for this would be 1.> someone trying to cause grief as a result of the warrants being allowed to lapse or 2.> someone interested in doing the financing attempting to keep the SP weak in order to gain leverage to do the financing at a level lower than desired by the company. These are of course not the only possible reasons, just potentially the most likely.
Salut,
Leigh McBain