Share Price
Property mad good post enjoyed the read, good stuff.
Diamondwiz I enjoyed your post also, very logical.
First off anyone with serious cash would buy a private placement, if you had a mil or two and wanted to invest you would be crazy to buy on the market (at least before the ELOC) buying a PP you get two for one the way I understand it, that being the case as Bishop has said if those that bought the PP say at .08 and got another share flow through free, then the shares cost .04 when you average it out.
So would it be smart to sell half your shares on the market for .08 and on news higher. That way the remaining shares are free. you have made no money yet but all the shares you own are of no cost to you and no financial risk.
I know some think that is crazy but some might have bought the PPs to do just that.
Have a few million shares of this stock for free, how many of us would like that.
The other problem as I have said with PPs as I have said many times is the influx of cash is not purchased on the market driving up the price.
On to the draft or person aquiring the company.
If I were to buy a company I would want to pay as little as possible for it, if dirt cheap was an option I would be all for it, kind of a no brainer.
So I would certainly not try to aquire the company on the market in a hurry as fast buying on the market would drive the price up and drive up the net worth of the company and at the same time inspire other investors to buy shares.
Day traders buy on speculation and sell on news, just the way it works.
When we get news the price goes up a bit but then is easy to contain, last news there was around 3 million shares put on the sell or ask so than anyone wanting to sell their shares to make a little profit and wanted the same price as the person selling the 3 million shares they would have to wait until the 3 million shares were purchased before they would get a fill as there ask would go to the back of the line of shares on the table.
So if they wanted to sell them they would have to take less for them than and ask less to get a fill.
So if you are the person with the 3 mil stopper from going higher you could buy shares for less than what you are asking aquiring shares as much as possible on the way back down and as the news excitment subsides you can remove your big stopper shares and keep even with the buy and ask so you are not driving the shares up or driving them down. we sit around 1 mil on the ask and 1 mil on the buy on the depth chart on the TSX.
Sit at .08 and shake the trees for shares as it was put by somebody here.
What I mean by shake the trees is people getting tired of the stock not moving selling their shares, while you slowly and painfully aquire shares little by little
Why would you want to buy shares in a hurry and drive the price up and pay more for them, buy them slow and cheap. anyone that thinks we float around .07 to .08 by accident for years at a time is crazy.
It is controled, like you said DW check the charts.
Back to buying the company you stand a better chance buying the company cheap if the shares are at .08 than say 3.00 or 4.00 and you also stand a better chance getting the company cheap if they need the money to move forward and they cant get the finance because they are at .08 and are not worth much at that price as compared to 3 or 4 dollars.
All speculation why we are where we are but the company performance is no reflection of the share price but control.
The other possible is a company that holds a ton of shares has decided to unload them for whatever reason and they can only do it a bit at a time and most of it on news and until they are out we are not moving up, they have decided .07 .08 is the floor sell price and they don't care if the company is going places, they are on to other things.
Anyways I don't think the share price is reflective of anything we have in the ground .08 is easy to control.
As I said before the 30 mil we are being given in an ELOC is not for our share price.
All the share price games are out the window when we get to somebody paying for our diamonds.
thats the way I see it anyways, be nice to see some news soon and not just approval of ELOC
I keep sleeping lol
seriously it should be soon, been enough time for it to have been done.(TSX ELOC)