The Simmering PotEver try to keep the lid down on a pot of boiling water? It just does not work--the pressure is too great.
Canaco is acting like the pot of water. It took a massive 5.6 million shares of buying to finally break through the $3 barrier early last week, at which time all 160 million shares outstanding could be sold profitably. In fact, another 9M have been sold by investors who a) Never go broke taking a profit or b) Get out now and will buy back later for less or c) Sell half now and ride the rest for free or d) Re-invest elwhere for cheap
Yeah, there sure are a lot of 'good reasons' for selling. But why on earth would anyone buy at these levels? After all, the two drill intercepts reported were no great screaming hell. And yet thirty odd million dollars of fresh money has come in since the big jump last week. What gives?
I think the answer is obvious. Whatever caused the syndicate of underwriters to fall over themselves a couple of months ago doing the bought deal at $1.40 without warrants is still undisclosed. It's validity is being confirmed every day by the constant buying pressure.
As the Stockscores guru likes to say : "Buyers are in control". One of these days the pot is going to boil over.