Institutional buyingPart of the gospel of jr. miner investing is following institutional money. Recent volumes, as well as the specific brokers participating on the buyside, indicate that LGO is back in play. For example, UBS has purchased just under 2mm shs since the start of the year. This is not retail money. In fact, UBS's trading in Canada in approx. 50% European; 35% US and 15% Canadian by origin. 99% is institutional or high net worth, meaning that if you see them buying, odds are their going to do it for a while.
Similarily, Byron (3mm) is an institutional shop, who obviously is trying to butter their bread on this play, but the only way that small caps like LGO get institutional traction is by pitches/deals generated by boutique shops like Byron. Moreover, institutional buying in jrs. with a higher than avg. VWAP is very positive. It means they want stock and aren't clowning around for pennies. You have now idea what sort of hiding a buy side trader would get (...and rightfully so) for not paying up slightly to get stock in a story that the fund manager deems compelling. Institutions don't buy companies like LGO to flip them for a penny. Any institutional counterparty (i.e. seller of stock) probably owns more stock and is taking advantage of liquidity. What' more, they are 'feeding the ducks', which means giving new entrants decent enough chunks of stock to provide them a starting platform from which to build a reasonable position, i.e. keeping new buyers interested. This is also evidenced by the fact that LGO has not gotten whacked down after its move, and has contined to trade in decent volumes.
Long story short. LGO is lookin good...