Time for rally after pp-anouncement?I would think the pp is pretty much guaranteed because of the stock action the last couple of weeks. It is no coincident that the stock bottomed at 53 cents..
Have a look at the chart below (sorry for the swedish in it). The first date marked is the the day the last pp was announced, the stock rallied 47% in the coming days after that. Guess what that would do to the SP now..? 79 cents = the old ATH. The second mark is when the announced that the pp was increased due to demand, the stock rallied then as well.
The reason I think it might unfold as after the last pp are these:
- Uncertainty will be removed
- PP pretty much guaranteed
- The ones taking the PP has already sold and will defence 54 cents
- Lots of drill results in the pipe
