Alpha Minerals Inc ESOFD

RE: News- More High Grade Uranium Including 37.5m

[NorthTea]

this is very very good...speaks to continued and consistent results we have seen and will see in the future. the deposit is shaping up as one would hope and expect.

 

the drop in share price yesterday has nothing to do with the fundamentals of the deposit or the valuation related to the deposit -- it is crystal clear that the share price action yesterday has to do with a poorly executed financing. dont get me wrong -- i think it was a very smart decision to raise $ - specially in today's resource environment. BUT...to stick a half warrant on the financing and sell it to a bunch of hedge funds (that is my speculation) was a huge mistake -- all the warrant does is incent the funds to sell their existing holdings and stay with the warrant which acts as a free call on the future success of AMW -- the company did not need to do this. As for my comments about blocks -- i know that blocks do not raise $ for the company treasury -- all they do is clear the large sellers out of the market. Given that i heard there was more demand than stock issued yesterday (at $4/$4.40) I would have thought that the big sellers would have been matched with the buyers who were not filled and wanted to buy at $4 (higher than where the sellers were, but without the half warrant!) -- had that happened we might have seen large block trades in the market that would have cleared out the sellers --- perhaps we did not see it because the sellers are the same funds that bought the placement and they are too coy to want to let the company know that 5 seconds after they took down an offering they are sellers of the same stock.

In any cae -- this deposit and potential is fantastic and it will not matter what the short term gyrations look like. Great news out today and great news that the company is cashed up -- next time though i hope no warrants are given out to the vultures.