OTCPK:TNGZF - Post by User
Comment by
goldinontarioon Feb 10, 2015 1:32pm
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Post# 23414951
RE:Why Grenville should be trading at over $0.90 within a week
RE:Why Grenville should be trading at over $0.90 within a weekI still stick by this forecast but as I mentioned in my post of last night, due to the financing and the fact that the market has to digest the financing (as we can see with today's action), it will take a little longer than a week to reach the 90 cent range. Though I wasn't a huge fan of a 58 cent financing, I found it fortutious since I was able to buy more shares today in the 57-60 range. It is a general rule of thumb that a stock price will fall to around where the new share issuance price is which is what we are seeing today. Once this stock is digested, it should be onward and upward for GRC. Don't forget that when the company stated that "for every $3 million they should be able to pay an additional 1 cent per share per annum in dividends" they were referencing the current price at the time which was 57 cents. So the fact that they financed at 58 cents, this financing would not impact that statement and thus the additional $10 milliion should alllow the company to pay an additional 3 cents per share in dividends for a total of 8 cents/annum once these monies are invested.