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Woulfe Mining Corp WFEMF

Woulfe Mining Corp is a mineral exploration company. It is engaged in the acquisition, exploration and development of mineral properties.


GREY:WFEMF - Post by User

Comment by Segusmundoon Dec 31, 2012 6:08pm
256 Views
Post# 20785789

RE: What has changed?

RE: What has changed?

Thanks for the good reads Mercury, Chrisp and Majormac. I take guidance from all of the comments. I think there is agreement that no one is suggesting that institutional ownership, in and of itself, is any guarantee of SP success. Nor is it a reasonable wholesale assumption that buyers are necessarily smarter than sellers. However, at least from my perspective, it does stand to reason that institutional or professional investors, such as Dundee in this case, have more experience, tools, and staff available to render more informed investment decisions than retail investors, or they won't last long. (In this instance,  Dundee appears quite successful. Charts indicate it has risen almost ten fold from $3.64 to $30.65, post 2009 crash.) Moreover, I assume the larger a proposed institutonal investment, the greater will be the tools, staff, and DD devoted to the investment decison. In this regard, what we do know is that Dundee has been purchasing this stock in high volume, in some cases at higher share prices than current. This is significant to me since Dundee's ability to trade out of this stock on the short term is dramatically limited by Woulfe' thin trading volume. Dundee obviously knew going in that moving 30 to 40 million shares of this stock would be much more difficult than moving 30 to 40 thousand shares, especially without significantly moving the market. Therefore, I have to believe that Dundee thought long and hard before making its (likely long term) Woulfe committment.  I think the same reasoning probably holds true with most of the other long term Woulfe institutional investors and long term retail investors that exist. Presumably, this continuity of ownership, together with good fundamentals, is why Woulfe has been in a long term uptrend for the last 4 years. Does this make these long term stock holders right? Who knows? But it does give me some added comfort, right or wrong. 

As to share prices specifically, I think Quotemedia.com listing of recent trades support Mercury's point that this recent selloff is principally low volume retail sales. I haven't seen any large block trades during this recent selloff. Today, the volume was virtually non-existent. Thus, in spite of not receiving the promised NR "before Christmas," there appears no stampede for the exits. Low volume retail sales have been absorbed by buyers at these lowered prices. If this were not the case, the share price would, presumably, be lower than it is. As in the past, this stock appears to remain essentially in a holding pattern pending the NR. I expect the longer the delay in the NR, the more fear, paranoia, and selling will occur by the risk averse. These sales will provide investment opportunities, right or wrong, for the more risk tolerant, and so it goes. Anyway, these are all just my ruminations. Happy New Year to everyone!

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