tradingI have to admit that it has been even more frustrating watching IAE than OIL, prior to their production going online. I never thought I would say that.
If I had to buy more shares of this I wouldn’t do it at the open b/c the trading has been consistent on this thing over the last couple of weeks. Up in the morning and right back to where it started by mid-day. Up 5 cents. Down 5 cents. Going nowhere. This is the tightest trading I have seen on a non-penny stock in quite a while. When this happens it’s usually b/c someone has their claws in it and they control the share price. It doesn’t seem to be one particular house that is doing this so I would have to presume that someone is doing it through multiple investment firms. This trading is not normal by a long shot.
Can’t wait to see this trade on the TSX. The Venture is a nightmare in this market. TSX will bring greater liquidity and that alone will make it more difficult for any one player to hold back a company as they will need more shares and $ to do the same thing.
Just look at valuations out there.
For example look at SOR vs GTE. Exact same share structure (diluted). Both are being primarily valued on their 50/50 interest large Costayaco oil field in Columbia as that is their main asset. Both have the same production. At one point today GTE was trading at a 67% premium to SOR. SOR trades on the Venture. GTE trades on the TSX and AMEX.
IAE and any other company with a good story that trades on the Venture has to do what ever they cane to get on to the TSX b/c right now the Venture is a complete joke.