GLOBAL MINERALS LTD NEW GMFLF

cheap paper

[coach247]

I think a lot of the weakness this last week was due to the cheap paper issued in the last financing. Even though CTG has taken a huge hit in the market price, for most of that slide the participants of the PP were still selling at a profit. I would even guess that some of the cheap warrants were also cashed in for a quick profit. I own quite a few high quality juniors that were down as much or more than CTG. Before all this started I expected that the juniors with internal revenue generation would not be hit as hard as the rest of the sector. However many of them are now down more than 50% in just a few weeks. This is an ugly market, and people are not making very good long term decisions. I also agree that margin call selling is a part of the problem, and I came home from my trip to the Yukon to find I had a margin call of my own to deal with. I choose to look at the other side of the equation. Since CTG did that PP, the company is cashed up and will not be affected by this market weakness in terms of their ability to move forward with their stated objectives. Woe unto any junior that did not raise cash before this downturn, since I think it will be very difficult to complete financing plans for several months. The washout is just accellerating the absorbtion of cheap shares into the market. With penny stocks, even those that have great projects on the go, any large financing is going to create market weakness down the line, since most people will sell enough shares to recover their initial investment. We are getting that out of the way now, and in the meantime the company is able to move forward with development. I still think we have a few more scary days ahead. This liquidity crunch is not going to go away and there will be other chances to buy cheap shares before its over. I will be waiting with a stink bid. cheers! COACH247