Arcan Resources Ltd ARNBF

RE: RE: RE: Stock being held back

[rockman998]

The stock isn't being held back and there will be no take over as I said last week. This company doesn't fit the CPG model but it does represent their only bad investment of the last three years. CPG's model of paying $ 80k per flowing barrel would place a negative value on the stock price (CPG has a very regimented investment approach). The negative ARN share value based on flowing barrels was mentioned on BNN last week. PBN is presently in no position to make a large investment as they are presently involved in a spin out of their shares from Petrobank. Besides PBN have what they want.... a farm in agreement.

What is most likely to happen is that ARN will have to raise some cash to reduce debt. This is a tough market to do that in. When I sold my 81K shares last week I was surprised how difficult it was to sell them. The market makers kept dropping the bids below the partial fills. The stock was not under accumulation which it should be if there is to be a buyout.

The problem I see is that the ARN traders haven't generated enough volume to pre sell a share issue using third parties. So I expect that they will try to run the stock up and down between 90 cents and $ 1.20 a couple of times(each time the highs will be lower). The retail investors are suckers who buy on the way up and hold on the way down. I expect PBN would have agreed to maintain their percentage share holding in any share issue and maybe CPG (doubtful).

So the question is a share issue at what price. It looks like 90 cents to a $1.00. However, tax loss selling will be over next week and the stock may get a boost. If you can buy this stock under 90 cents you probably will have an opportunity to sell at $ 1.20 unless they dump a share issue sooner than I expect.