Post by
theNumbers on May 14, 2007 6:02pm
Huge Volumes
"Is there any chance this is related to Coronado's /CRD/news 13 % copper on property adjacent to UNB claims??" - loppy Post#14848214
No.
Pinetree Capital's (TSE:PNP) announcement that they now own 10% of UNB needs to be looked at in much more detail. In particular, the SEDI filings show the last 900,000 shares that PNP purchased to put them over the 10% were bought at $0.78 on May 10th.
Trading on May 10th opened at $0.70 and reached $0.78 about 11:30 a.m. with a block of 900,000 trading. Volume up to that point had been only a few hundred thousand shares.
Since PNP bought that last block, about 14 million more shares have traded in Toronto with an equal number trading in Frankfurt. Trading volumes in just the last three days are 14,886,683 in Toronto and 14,282,332 shares in Frankfurt for a total of over 29,000,000 shares.
Considering there are just over 60 million shares, almost half the shares have traded in the last three days on the two exchanges where UNB is listed.
Either there are a lot of people trading stock back and forth over the course of a day or two or someone else is about to announce they are also a 10% shareholder.
While it is possible that PNP bought up more than the 10% and stopped before triggering a follow on bid, it is more likely that one or more other funds are trying to establish a significant position. With 50% of the shares trading in less than a week, the share price would then run up to significantly higher prices.
As stated in prior posts, there were a lot of people out there who thought UNB only had Bald Butte at 164 million lbs of Moly. Recent announcements by the company have reminded everyone that Cannivan hasn't disappeared. UNB is sitting on over 500 million lbs of moly. At only $0.20/lbs UNB is worth over $100M. At $0.20 a lbs it would be trading much less than companies in or near to production, but would be cheaper than similar companies still firming up their resources. Of those cheaper companies, only UNB has 160 million lbs on private land which will involve a lot less red tape to permit and bring to production. And when that happens, UNB will be trading for more than $1.00 a lbs in the ground.
No doubt, many warrants have been exercised over the past few days - even the $0.45 warrants are so in the money that most will be turned into cash. That could add another $5 million to the over $3 million the company is now sitting on. That certainly is more than enough to firm up both BB and Cannivan resources.
With so many shares trading in such a narrow band over the last three days, any surprise here will likely by on the upside.
theNumbers
Comment by
banjoboy on May 14, 2007 7:31pm
theNumbers you also state, "UNB has 160 million lbs on private land which will involve a lot less red tape to permit and bring to production. And when that happens, UNB will be trading for more than $1.00 a lbs in the ground." By "bring to production" are you including the cost of the mill?
bb