TSXV:CAV.H - Post by User
Comment by
CatchinTheKnifeon Jan 26, 2010 1:51pm
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Post# 16720283
RE: RE: RE: Any BAJ shareholders out there?
RE: RE: RE: Any BAJ shareholders out there?This pullback is notorious in the mining industry before a financing. North America is notorious for stocks being driven down while trying to complete a financing, as potential sources of financing want to maximize what they can get out of the deal. Financers will drive the share price down so the company will have to offer more in return for the financing.
I am not saying that this is the case here because I believe Baja has an attractive enough project to likely have potential financers competing for the opportunity to get involved with this deal. However, investors know that getting financing often results in a stock pulling back and they are likely looking to lock in profits with the intention of getting back in at a cheaper price. A great play for those that can handle the stress of day trading. This downward pressure combined with the general weakness is serving to provide yet another great buying opportunity in to this company.
I bought in low, averaged up and will watch closely over the next couple of weeks with intent to average down. The longer the share price stays stagnant the more opportunity there is to accumulate and the greater the eventual profit. Institutions and major investors are very savy at this game, and in my opinion this stock is in its final stage of accumulation. Could be wishful thinking.
Good luck to all.