GREY:OLEPF - Post by User
Comment by
run2goldon Feb 28, 2012 4:37pm
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Post# 19600626
RE: Acquiring company...
RE: Acquiring company... Tony,
As usual your post makes a lot of sense. I think the big volume two weeks ago was due to some news slipping out that a deal was close (in principal) or negotiations had passed a milestone. However, as you say, its unlikely a deal would be finalized before perceived stability in Senegal. I agree that the timeframe now feels like April for an announcement. I hope the new resource confirmation is completed by then. The African Mining Intelligence article from a week ago confirmed they are working on it. I'm still betting the buyer is Randgold. And I'm betting word will slip out during March and the stock price climb will begin to move up before an announcement in April.
I also doubt the stock goes below 80 cents. Too many people like me ready to go all in at that price. The chart shows significant resistance at 80, and I can't picture a scenario where the stock isn't significantly higher than that later in 2012. Almost zero downside unless your time frame is shorter than a couple of months. And if that's true, you should try Las Vegas instead.
Finally, who in their right mind that holds significant volume of this stock would consider selling at this juncture? You'd have to be nuts not to wait a bit longer. That's why the pressure on the stock is such low volume. OLE is just not attracting new buyers. No marketing, no PRs. Once a bit of news leaks, it'll be a stampede to get in.