Market action todayI watched the market action today. It was interesting to see today's seller initially at 50c ask, later willing to dump his shares into the 48 and 46c bid.
Either somebody was really needing 3k cash right away from his old Woulfe shares, or pressure is being placed on the AII share price for other reasons. Is this somebody with inside knowledge that something is wrong in Korea? the asks are too small, and all over the place from several brokers. Looking at level 2 there are a total of about 50k shares offered between 50 and 80c. CAD 35k worth.
I find it hard to believe that these are retail investors (most all former Woulfe holders) who are dismissing the recent financing at 80c from company insiders and instead placing and dumping shares way below that number. If they really needed to sell for cash, retail holders could get a higher price for their shares if they just waited for the bid to build.
My conclusion is these are venture people: metal price down + commodity market in a slump + equity financing coming = sell into the willing hands of the banksters. Do they make money? My wild guess maybe they are paid a number for each fractional drop in SP they manage to get.
I think there is a lot more to this story so I am adding here and there. Here are some main points: 1) Management has a large direct stake in the success of the company; 2) Bridge funding is being secured on good terms and much better prices than the venture market indicates; 3) Sangdong mine looks very likely to go ahead with construction, and to be in production within two years, likely right at projected time of rising metal prices.