OTCPK:CFMSF - Post Discussion
Post by
tooclassy on Mar 20, 2012 10:29am
Thoughts on CFO psychology
Thoughts on Clifton Star stock psychology
There is a lot of "wait and see" attitude out there in Resource Stock Land. Waiting for what? There is a lot of fear out there in the markets. This is one reason why trading volume has been poor in CFO over the last few days.
On the positive side, investors are waiting for an update of the recent drilling that the company has done:
At the least it should increase the volume of trading, and refocus investors on company fundamentals. And increase the price too if the news is unexpectedly good. CFO has an overhang of "old" frustrated owners' stock for sale. Most of that overhang was sold into the market on the first day of trading after the cease-trade order was revoked. 1,400,000 shares traded on that first day. But some of the overhang is still out there. As trading in CFO absorbs that stock, the price will go up (or it can go up unimpeded). There has not been enough volume (liquidity) for those sellers to sell into, so one broker (Canaccord) dumped 60,000 shares at the market early in the day Monday and this caused the stock to drop roughly 10 cents to $1.75. The stock price partly rebounded but these sorts of things do damage that we don't need right now. I am not too worried about CFO because I understand the psychology behind the CFO market. Basically, as I see it the amount of stock for sale by long term, tired, "emotional" sellers is a finite number. That number becomes smaller by the day and will drop even faster during "liquidity events", whatever and whenever those may be. The more liquidity we have, the faster the price will rebound up.
TC
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