Re: Hummm,...been away too long!
in response to
by
posted on
Aug 27, 2012 11:10AM
It seems to me that any stock can be capped if the buying volume is weak relative to the total shares outstanding. If there was interest by the retail community comprising of existing and new purshasers of shares, as well as block accumulators by longer term holding period institutional types, the SP would have to increase both short term and structurally long term (majors would likely have to take positions in the long run).
As for Probe, if there was demand for 5 to 10 mio shares for instance, doesn't it seem likely that Anon or anyone else for that matter would find it difficult to cap the stock?? This assumes that there is a significant block of ownership that is not available for sale in the short term (management, many posters on this blog, Sprott etc.). So the buying of 5 - 10 mio shs would have a much more profound effect on the SP given that a decent chunk of the float is unavailable for sale.
Therefore, the question becomes: Where is the demand?? One could blame the poor performance in the junior sector as a whole as victimizing Probe. We all have heard plenty of that but I have to believe that Probe's story should be able to create some buzz to start enticing better demand relative to other juniors in the sector at a minimum. I certainly don't have any answers.
Thoughts?