MrigsThere is no law preventing any institution from purchasing stock at any price. Having said that many funds have criteria guidelines set for their fund managers to abide by and for many the $1.00 figure is one criteria and so is a market cap of $100 million or better for others. So there is no general guideline per se. There is a general understanding that once a stock can sustain above the $1.00 level it attracts institutional investors for the reasons given and there is some truth to it. Keep in mind however it all depends on the merits of the company and potential upside. In speaking with CUU recently they feel any buyout price is probably or likely to be around $2. perhaps a bit less due to the high number of outstanding shares since 2007 and the fact that the resource estimate will be somewhat improved due to improved costs and metals prices since 2007 and that the extension zone drilling this summer won't be included in the feasibility resource calculation. I see however that the company did mention about considering adding an "analytical report" about the extension zone in the FS but that doesn't qualify it in terms of a NI43-101 resource. Maybe we will see a better gold value after some rechecking of old holes and that would hopefully add more value to the FS. The bottom line is the expanded resource is there but we won't benefit from it directly for the most part because as I was told they would need to do about 50 more holes to prove up a resource estimate for the expansion zone and that is too costly and time consuming this far into the FS. The new zone will be a bonus for any interested buyer in the property which will likely be Teck so maybe they can negotiate beyond the FS for the extension zone but without a NI43-101 there is no formal value attached to it. CUU has some good upside left obviously but not what some seem to be getting giddy about. That's what I took away from my conversation with the company recently and yesterdays NR. Others are entitled to believe what they want and they will but I invested in CUU and value their opinion not some poster with an aggressive agenda. I try to invest in facts not hyperbole of which there is plenty on this forum. Sorting through fact and fiction can be a task for a new investor and I would advise them to contact the company directly and get the facts its a toll free call.
Re: NI43-101
https://en.wikipedia.org/wiki/National_Instrument_43-101