RE:RE:RE:RE:RE:Last post Consolidations are in some ways a good sign if your not already in and under water. A rollback multiplies an already loss to breakeven point by the same ratio as the rollback. However if your in profit at the time it also multiplies the how far it has to drop to loose your profits. No effect if your holding is equal when it occurs.
As a matter of fact price usually jumps a bit before dropping post rollback. Tat is time to jump as normally it will recede again. Companies usually don't roll back under 100M shares. The odd one does but it is not the norm.
I watch for rollbacks in these venture stocks. It is normally a positive future signal. Explorers don't have an income other than placements. That is how they rais the funds to drill or purchase properties. Lower share counts make it easier to do a PP with lenders. So when I see a rollback to 50M shares or less. It says management is still intending on having another run at it some where. They havn't thrown in the towel just yet.
It will probably be at least 0ne year perhaps 2 or 3. So I place them in a list and watch if they pick up some new claims some where. Then investigate the area potential. Is there others having success finding mineral in the region ? During the wait period news usually dries up, Price collapses Volume is low and speratic. with a few big days. Keep track and you will find the majority of buying is usually done through two or three Briokerages.
If you have ever studied Dark Pool accumulation it is nearly impossible to detect. But the indicator " Balance OF Power" does a pretty good job once your familliar with it. It is what it was built to do.
When a PP is finally done price will almost move to the same level or very close. Just look at GGX and GOM. Once money has been raised they then can restart putting out news on initial selected grab samples and announce a future drill plan creating interest which pushes price. Most times management has awarded themselves incentive grants and options. These are now excercisable and can be off loaded into the general market. Whether or not they discover anything is irrellevant . That is why I say never play or buy the company. Instead buy the lull and sell the hype.