RE:RE:Pamplona TraderI am prepared to hold if we break to the downside (I believe that is most likely outcome) and most likely add to my posiiton. I agree increased volitility is most likely when volume and liquidity decreases, but that also creates opportunities as marginal interest, either buying or selling can really move the price (aside, algo's and traders love such a situation, and definately NOT a time to be using stops). Given NXE's spectacular results and inferred pounds in the ground, an opportunistic 3rd party interest is a real possibility, however, I believe probablility is low at this time, as Areva and Cameco are essentially basket cases, and Rio Tinto is busy elsewhere. A utility won't come in without an experienced operator, a producer like BHP is an outside long shot, and China's operating uranium mining operating history (ie. Africa) makes them unlikely to even try to buy given the Canadian regulatory regime.
PamplonaTrader wrote: Hello Teevee,
I've privately intimated that NXE is about a week away from a violent break. Range has been relatively tight since the last NR and my feeling is volatility is imminent. The $0.70s have been holding up so far, but mind the open gap at $0.63.
Like yourself, others have expressed concern about the end of the drill program encroaching and liquidity drying up as a consequence. If anon wanted to sell, they may get their opportunity with the next NR.
That said, I fully expect the best results ever on the next batch of scints. Assays follow. Traditionally, the end of a drill program is also when juniors go to the market with hat in hand. NXE has cash and will not need to raise money.
Also, don't rule out corporate action.
teevee wrote: See chart below. The chart suggests NXE will either break to the upside or downside. With the end of the summer program, maybe we break to downside until winter drilling program starts? What are your thoughts? TIA.
