I believe the most gains on stockprice just come from the US investment community being educated on Chidliak and the economics of it.

This past 2 weeks, I would suspect a large % of the $$'s into Chidliak came from US investors and the outflow are mostly CDN investors.

If there were 1 or 2 US investment houses that wanted to invest in Peregrine Diamonds, when would they do that?

1 - They could have bought all they wanted at 21 cents right? Not really, they were more likely ineligible to buy and then exercise the warrants. So, they could have just bought shares on the open market and hope that peopel with warrants sell shares and exercise the warrants...more then likely they would just sell the warrants to other bidders and no additional paper would even come on the market at all.

2 - Wait until after the warrants exerise and that creates a lot more paper available on the market to be sold. Look for market depth to come up above 21 cents and then start buying it up...keep buying...slowly move up the stock price and more shares come on the market for sale....keep buying...push it up. Then pause and wait. Share price depresses and that brings more market and depth into the market.

3 - We've had that pause and more paper would be coming into the hands of the buyer instead of the buying buying into the market. Accumulate and accumulate, then push the share price higher and higher to gobble up more shares.

I suspect a variation above is what has happened recently and if that firm wants to buy 10 million or even 9.9% of the shares...this cycle will continue. Buy, pause, accumulate, Buy, pause, accumulate....and the shares higher naturally as weak hands get removed altogether.

LONG...PGD

EKIM