Price suppression
Anyone out there have any theories about the absolutely absurd trading in Mason last week? Four million shares traded on Tuesday when the mining permit was announced, but the stock closed down on the day and then traded only 300 k shares the next day. What gives? This is certainly not weak hands getting flushed out or the heavy trading would have continued for several days. My suspicion is that somebody (Anonymous) is deliberately suppressing the price of this one and it has been going on for the last four months with Anonymous constantly selling into the bid. And it's easy to do with Mason because the trading is so thin. There could be a couple of reasons for this; somebody just wants to accumulate as cheaply as possible, or more likely there is a takeout offer coming. The projected internal rates of return on this proposed mining venture are extremely compelling and what if somebody wanted a homegrown (almost) source of graphite supply for their gigafactory? And ore reserves are such that proposed production rates could easily be doubled in the future if demand was there. It's hard to believe that the big guys are just going to sit there and ignore this unfolding cash cow as it develops. I think a takeout offer is coming, but with the Quebec government's involvement, it will have to be a friendly offer at the right price. The government should be happy to turn over their shares for the right price. Then they don't need to worry about anymore capital infusions and can take much deserved credit for providing seed funding for this new Plan Nord development. The profits can then be reinvested in the next development. So what is right price? It certainly won't be at the low end of the typical take out premium (30-40 % over market price), more likely at the high end (90% over market). And it will have to be well north of the latest financing which was done at $2.40. My prediction; at friendly? offer in the $3.50 - 4.00 range coming soon. The Mookster