Peregrine Diamonds Ltd. PGDIF

RE: Last Hour

[Durkastan]

My speculation on the end of day action is:

Many traders don't sit in a stock for very long, like I do. They preferto shift around, looking for the easy money in short-term trades.

People know that there is news coming soon. They know that by the time news is released, it's often too late to make the easy money. On Friday afternoon, they know that there is a higher probability of news developing between the Friday close and Monday open than there is between any other close and open (longer time span). So they decide that the risk is too great of 'missing the boat', and jump in.

If we see an NR on Monday morning, it does not necessarily mean thatthere was a leak. It could mean that a small number of people correctlyanticipated news being released over the weekend. Like I mentioned in an earlier post, the overall volume traded was too small to be overly suspicious.

Price appreciation on anticipation of news is a very common occurrence, especially in smallcaps. I've seen it happen countless times. I've no reason to believe that this case is any different.