Time to short ? Dear Nick and PK Potential,
The volume of Friday is nothing special but a continuation of what has been going on for some time. People have been looking at the information available and they are coming with very different conclusions.
One group has come to the conclusion that time delays since the first news about the financing was issued on April 12, 2012, the consolidation approval on June 1st and the first million closing on July 5 2012 is so long that the for them, the chance of AFA completing the financing and its sampling program is small, so the only path for the share price of AFA is back to $ 0.04. Base on that analysis, old long term investors are selling at any price in the hope that getting $ 0.15 is better then nothing while other are even willing to short the stock...
A second group of investors has taken a look at AFA business model surrounding the development of its marine projects, the potential of EPL 3403, and the association with IMDH and concluded that the business model make sense, that the potential of EPL 3403 is very promising, and that with access to IMDH vessels, AFA can generate good cash flow marine mining operations on EPL 3403. What was really missing in AFA was access to the funding, but since AFA shares price has been so distress for such a long they could acquire cheap a large position in the hope of making a good return on there investment, so they have decided to start buying shares..
I know that poster like Franjull and Felix 51 have a hard time seeing anything potentially good about AFA, but their comments are base on nothing but the same general comments ....
I am not certain if any of you have realized but between the April 4 news about the financing and the July 5 consolidation a group of buyer, using house 80, have acquired 7,252,000 shares at an average price of
$ 0.038 (1,813,000 @
.152 post consolidation) and since the July 5 2012 consolidation they purchased another 920,750 @
.156, for a total 2,733,750 shares (or about 11 Millions shares pre-conso).
So my bet is that the long will win big and the short will be burn...