American Bonanza Gold Corp ABGFF

RE: RE: Chan Exercise Option at 0.07

[Combo9]

If a buyout was coming why would the price drop?  Usually those in the know would want to keep hold of shares rather than sell them.  Seems to me like a newsflow issue.  They say no news is bad news, but it seems BZA just doesn't take PR too seriously.  Maybe they just want the revenues to do the talking.

 

My guess is the price will consolidate in the 0.15-0.20c range until news.  At these prices, the only ones making a profit by selling are long term holders who bought in or before 2010. 

 

This is either (a) a great buying opportunity, or (b) investors have been left in the dark about some material change in the company which means they won't become a highly profitable gold producer in the near future.  As possibility B is illegal (public companies are obliged to keep investors aware of material changes in the company), I am leaning towards A.