RE: STIFEL PURCHASESGreat post DumDum3
1) They're not buying in advance of initiating analyst coverage. It's not proper practice for dealers to buy up as many shares as they can and then provide 'impartial' analyst reports recommending folks invest in those companies.
2) They're not buying based on rumours of a pending take-over bid as those trades would be heavily scrutinized and investigated by regulators upon announcement of any such event.
3) They're not buying based on advance knowledge or rumours of the revised resource estimate for the same reasons as No. 2.
4) As alluded to by others, it is a common strategy for companies who are about to acquire another company to acquire as many shares of the target on the open market UP TO, BUT NOT EXCEEDING 10% of the target company's issued and outstanding shares. This allows them to gain a toe-hold leading up to the acquisition of the target AT BELOW THEIR SUBSEQUENT OFFER PRICE. Note that hitting 10% triggers an Early Warning filing requirement (as the acquiror becomes an "Insider' of the target at that point) which most acquirors will avoid.
BASED ON THE VOLUME AND UNRELENTING PACE OF THE PURCHASES, MY VIEW IS THAT THE BUYS ARE MOST LIKELY ON BEHALF OF A POTENTIAL ACQUIROR (U.S. BASED) PRECEDING ITS OFFER FOR CUU.
Best.