Reason why VLE didnt go up higher.I predicted VLE would hit $12 today. The news was so big it had to. When I noticed it starting to fall I too sold in the mid $7 range. I sold because I realized something changed.
First off Cormark and RBC the day before were buying hand over fist and were crossing out stock. My observation today was somebody with size was walking VLE down. When VLE showed strength the volume would kick in. We ended the day close to the day lows.
So why would someone want the stock lower? The answer is to do a bought financing. VLE is going to need money for future drilling. There isn’t really any major coverage on VLE now either. A brokerage company(ie Sprott) and a syndicate of brokers ie RBC, Canaccord etc will now offer to do a BOUGHT financing at $6-$6.50 depending on the three day average of our trades. In the meantime these same players will keep the market down. Why pay more than you need to right.
Now once the bought deal is announced you will see a spike in interest and VLE will go much higher. Maybe VLE jumps to $8 or so if it’s a bought deal for $125m dollars. Now the financing is so much easier to sell. You have a $6 pp and a $8 share price. Everyone will want in.
After the PP is closed you will see analyst coverage come in from the same players as part of their agreement. With the brokers loaded with shares of course they will push this story then. They will have all the skin in the game that they need.
Its now very obvious to me why the stock pulled back. Sadly many sold out by second guessing themselves. Truthfully it was all a big manipulation.
Just my opinion.