GREY:CUDBF - Post by User
Post by
neverindoubton Aug 23, 2011 7:38pm
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Post# 18972836
Institutions and trading
Institutions and trading
It was interesting to see 49 North as an institutional holding. They are a specialty resource firm best known for their issuance of flow thru shares, and I guess being Saskatchewan based, it is a natural fit. I am surprised they got their shares at $1.50 and didn't get them much earlier and cheaper.
Much of the money raised, originally, through Cloudbreak came by way of private placements, all at less than a dollar.
You had to be an accredited investor and it was in this manner that I got my shares from my broker.
It is my understanding that POP and GSR cultivated a relationship with various brokers who could find wealthy clients who would not be looking for a quick short term gain and gone. My broker told me he only wanted clients who would think like management.
I suspect that most of the shares are held by insiders, friends and family, and brokers with selected clients.
The question was asked: "well, who is selling?' Probably an assorted group of people:
(i) with having stock at 40-50 cents, it is hard not to take some off the table, particularly through these markets; we all remember what happened to these juniors in 2008, and
(ii) there was plenty of buying just before the last news release with the stock at $2.03; some people just are not long term thinkers, and will write this off as a short term loss, and
(iii) on one of those 400-500 point loss days, you get a margin call, and you need to come up with money quick; you typically sell off your non marginable stocks first- the juniors.
(iv) and you will never escape a certain percentage of day traders; nothing wrong with that clientele but they are the ones that are most influenced by short term sentiment.
Overall, what makes this stock so intriguing is management is not looking at building an oil company. If things go according to plan, I would wager the exit strategy could be as early as 2013.
They will need at least another year to develop their various properties.
Good luck to all.