RE:Vermilion's wounded & Momo's smell blood.....mrmomo wrote: I hope some folks read my post "Downfall of House Vermillion" and took some of the statements i made there seriously. That was warning to some of the more novice investors in this sector. I know this sector quite well & it's ONLY purpose was to save your investment and maybe for some, some pain. Whether in the form of time, energy or money. There is a serious ongoing problem going on with Vermilion at this point in time and until that is resolved, i suggest folks AVOID this as a possible investment.
Since i basically outlined in my previous post what shape the company was in and the problems they face, i will make a few predictions going forward. First as the title suggests, the market knows Vermilion is vunerable and they will push it as much as they can. What do i mean here? Basically, since there's an enormous dark cloud over the company with regards to the viability of the company AND the sector as a whole being in trouble (and its been for quite some time), they will put A LOT of pressure on the stock towards the downside. As short postions stack & longterm investors panic & flee, it will compound the problem each time it drops. This is inevitable as vultures will see the opening and therefore will take advantage with leverage.
So with this in mind, i predict they will try to force & break the psychological level of $3CDN which if successfull could have a tremendous fall to $2.50CDN. At this point, the lenders will start to get VERY nervous AND it may lead for them to force Vermilion in a situation or path they don't agree with. Hopefully the company could avoid all this with the solutions i put forth in the last post. So either the company deals with their liquidity/debt issue soon or it will be dealth with for them by those who are owed.
So my prediction is at least ~$2.75cdn in the next two weeks or so, followed by an update from the company to reassure the market & investors including trying to stem the bleeding.
Good luck to all
U R full of it MR "know it all"