RE: RE: RE: RE: RE: still falling... Let's analyse this situation.
22 MM shares in the transaction from TomaGold treasury;
5,5 MM shares to remain in Stellar Pacific hands under escrow 3 year plan;
Stellar Pacific consequently an insider
President M. Giroux on TomaGold's board therefore insider too.
His Stellar's holding means he is going to receive approx. 700,000 TomaGold
definitely not a seller.
so 22 MM shares minus 5,5 MM + 700,000
it leaves 15,800,000 shares ;
other insiders at Stellar approx 5 MM shares at 0.133 = 665,000 TomaGold shares
unlikely to sell, wealthy guys go to sedar for the list and numbers
we now stand at 15,135,000 shares.
Now we get serious ; Stellar Pacific partner is Ultragold Holding PLC of Denver
Ultragold majority shareholder is Newmont Mining.
Last year following their deal, Ultragold subscribed 10,000,000 shares of Stellar (insider)
meaning they are receiving approx 1,300,000 Tomagold shares.
They are not a seller.
We now stand at 13,835,000 shares.
Institutional stakeholders in Stellar about 20 MM shares
so it is another 2,700,000 Tomagold shares.
Again unlikely to sell; no portfolio manager would sell just in case Tomagold hit big
in the coming months.
It leaves 11,135,000 shares out of which probably half will be sold in the market;
it has already begun.
Now for the traders : any 100 Stellar shares bought at 10 cents prior to ex dividend date
gives 13.3 Tomagold shares ; cost of trade $10 (debit)
Post ex -d date ; you liquidate the trade by selling 13.3 Tomagold share let say at 40 cents
and sell back 100 Stellar shares at 6 cents : net proceeds $11.32 (credit)
for a profit of $1.32 gross
For a million shares, means $13,200
Apparently a number of traders arb the trade but the size is rather small:
my estimation is 3 MM Stellar shares so approx 400,000 Tomagold shares.
The market is digesting that too.
The Private placement done last december $500,000 hard cash at 15 cents
and $1,000,000 FT shares at 18 cents. About 9 MM shares.
4 months hold period ended April 30th
Its now in the market, and one can assume some are selling.
My expect is 20% selling , that is approx 2 MM shares.
The big total is something like 8 MM shares on the sell side.
Volume like today is changing the shareholder's base
and the 8 MM figure is not a big thing.
Look like the stock would find strong support around 30 - 35 cents