Gamechanger
posted on
Nov 20, 2009 10:41AM
Creating value through Exploration and Development in the Sierra Madre of Mexico
For those of you watching the tape, perhaps you have noticed a new phenomenon. For several months now we've had this group of day-trader types (who are certainly within their rights to day trade) who every once in awhile will get off a trade of 100 shares at a low price, creating the illusion of a price drop by a few points in order to attempt to create the appearance of a non-favorable situation with the stock in order to influence other investors, potential investors and other day trader types who have been bouncing around in and out of Kimber perhaps trying to make $1000 here or $2000 there.
Lots of times, to my great annoyance over the past several months, I have had to watch this ridiculousness go on and even see this 100 share price drop as the last trade of the day, then have to field colleagues' questions at work about why there was a price drop off.
You see, the reason why these people engage in these little shenanigans is simple. They work. I try to explain to a radiologist, who is usually a pretty intelligent guy, that volume is what really matters, that a 5 cent drop on 100 shares is just a gimmick and doesn't really mean anything involving the share price and he looks at me like someone wondering if I really should still have a medical license. I'd imagine part of the reason he does so is because when he's tried to give a similar explanation to his wife in the past, she's given him the same stare.
In any event, now, what I'm starting to see are those little 100 share write downs going off and someone coming in right away and buying 10,000 shares. This reflects a significant change in the game. Are these big volumes here to stay? Is every dip going to be a buying opportunity for awhile from here on it? This would be a welcome change. I have long opined that all Kimber really needed to get was a little attention. Attention builds upon attention, and this most recent report was definitely something that got some people's attention. It's nice to see some bigger boys showing up to the game.
One last note: Keep in mind that the Veta Minitas and Coratare reports are still due out in a few weeks. Those were the ones that I was excited about in any event. This Monterde revelation was a welcome piece of great news, but, I must admit, not completely expected. Keep in mind that other very favorable bits of information might soon be coming our way in these other reports. Bull
p.s. Well, it's 10.29 and there just went one of those 200 share, piece-of-crap trades dropping the price from 105 to 103 with no return volley yet.
There we go, 10:32, 1800 went off at 106 then back down to 104. I'll give it a few more minutes.
Ah ha, 10:35, a Mexican standoff.
There we go 10:37. 12,806 shares and back to 105. Definitely a new game, at least for now. That was very good news, however. This new game might just last.