RE: Update? - BluedevilHey Bluedevil:
Welcome to the board.
Obviously, I am from the eternally optinistic point of view, but I would say that the time to buy would be now.
Here's some thoughts to consider about Cannacord and the financing. First of all, the financing included a share bought at $.51 and a matching warrant for those lucky investors where they could buy a share for $.65 for a period of about another year from now (expiration in May 2011). The holding period on the initial share expired as of March 20th. The financing included four million shares purchased. Now, if you were in on the financing, what would you do?
First, when the shares became free trading, the share price was fluttering around $.80; that's when the shares started getting dumped on the market. But who could blame them. If you bought at $.51 and sold at $.80, you made a quick 57% profit on a three month investment. Now, I agree that you might think that if these guys had faith, that they would hang in for the big time yet to come; but don't forget about the warrants. The guys who did dump their shares for seventy to eighty cents took a huge and quick profit, AND, they can still capitalize on the bigger better numbers if and when they come by exercising their warrants. Even though I hate that the shares have been flooded out there, I'm sure the types that put the money up in the financing are regulars at that game, and they took their money out of this deal and put it into the next one without any remorse (because they can still get back in for $.65 at will for the next year.
Second, remember the financing was for 4,000,000 shares. So in other words, if every single share traded since March 20th was sold by those Cannacord placement gurus dumping their quick profit shares (and they weren't) only about 34% of the placement shares would have been sold, since the entire volume of this stock since March 22nd has been 1,375,150 shares total. And, not all of those shares came from the Cannacord investors. Even though how much is an unknown, since the sellers many times appear as "anomynous", I would guess that far less than 25% of those share have been dumped on the open market. Now, that may seem like a big number, but, on the flip side of it, it says that over 75% of the financing shares are being held, even though the warrant could be the hole card for future profit. As I see it, even though it seems bleak that maybe a forth of the shares were immediately dumped, that is actually notably good (even though the shares on the market have driven the price down) that three forth are still being held.
Third, even though none of us believe that the stock is well know and being watched by the masses as of yet, let's face it, the price has held up somewhat since the dumping began, and buyers have showed up to pick up the shares that have come into play.
I guess as I see it, our perfect storm needs two things; good news and a tightening availability on shares being offered up for sale. That is why I say BUY! We are all expecting to see news soon, and it seems as though the dumping has slowed down (hopefully indicating the placement investors wanting to stay for the ride a little longer).
Grandpa.