RE: RE: Volume?What's even curiouser is that despite the huge volume the price remains exactly the same.
Yeah, I'm always watching the L2 like a hawk, and on that day (Thursday?) there was one or more institutions (most likely) that weren't interested in letting it drop below $2 anymore. So the $2 remained a constant bid, no matter how much anyone was selling into it. That's very pleasant to see.
Seems like on Friday the market cottoned on, so then you saw about 30-50 iceberg bids on the L2 competing with each other to buy it up. Thus the move to $2.08, as the icebergs rolled up the price like rolling up a tube of toothpaste. Then I guess some phone calls were exchanged and it was agreed to work with each other, and so the price settled back down.
If you believe in conspiracies, that is.
Watch EPU, the Peru ETF. It moved up strongly on Friday afternoon, with decent volume for that time of the week. I dunno if it was simply because the outgoing minister of mines had announced he had just resigned (who cares, he was leaving with Garcia in a few weeks anyway), or if there was other news coming out of Peru on a Friday afternoon that made the market want to buy back into Peru? Peruchocanuck, do you know if any good news came out on Friday afternoon from down there?
I guess what I'm saying is, I'm expecting that when Peru settles down and the new administration proves it's pro-mining, RIO should lose all its selling pressure. When that happens the institutions who all saw Albini's >$5 target will have no option but to accumulate aggressively again because nobody will be dumping $2 shares into their laps anymore.
Or at least that's how it looks to me.
But at the same time, remember that we've heard "cash is tight" at RIO right now, and one screw-up or "act of God" will see them exhaust their Red Kite loan facility and go back to the market to raise money. Floods, strikes, or strange vibrations coming out of the equipment, anything can happen. So it's too risky for the big boys to bid the price up TOO high, until La Arena achieves positive cash flow. Thankfully that's only in a few months.
I'm happy keeping 40% of my money in RIO. No fear whatsoever.