RE:RE:Ending the year at a dime CDNThanks, Laurant. You sure made a lot of people happy with your purchase today, including yours truly!
Your trade today re-emphasized to me that, principally due to low daily trading volume, Woulfe's current stock price has less to do with reality and more to do with emotion. Prolonged periods of no news over the last year naturally engendered fear, anxiety, and hand wringing amongst us retail investors. This produced small, but steady selling pressure and stock price deterioration to as little as .035c. Nothing had really changed with our hole in the ground, except our peception of its value. Meanwhile, all of the majors retained their tens of millions of shares for the long term. The short term valuation of the stock meant little to nothing to them. Thus, the stock price was principally driven by the emotions of retail investors. As Mercury Smith and others have recently posted, the daily trading volume has been so minimal as to be inconsequential in relation to the 350 million stock float.
Then, you come along and break the rules. You buy 75,000 shares. To do so, you have to blow through several price levels and Voila', the stock price essentially doubles to .095. Meanwhile: same hole in the ground. If another investor does tomorrow what you did today except buys about 250,000 shares, at least temporarily, the stock would be at .25c a share (based on current level 2 ask prices and ask volume). Of course, such an action would bring out more volume buyers and sellers and change prices. Nevertheless, the point remains. The current lower price of this stock is more based upon low volume due to fear than true valuation of the mine. The recent news releases support that the stock's net asset value is likely around .30c. Today you made that stock price significantly rise with your purchase. Hopefully, tomorrows investors will be focused on Woulfe's true long term monetary value and less on concern for losing their shirts as we all have been. I certainly have no crystal ball. I just think our hole in the ground has an intrinsic value of at least .30c a share making todays low prices a bargain. Surely, the stock price will correct somewhat from the increase caused by your purchase today. Nevertheless, with a little volume, I suspect the trend appears clearly up, not down, on this stock.
Good luck to all and Happy New Year! Seg.