RE:RE:RE:Lithium Price...I agree that the NMX story has had a negative impact on our share price over the last several months, but also believe that the latest range that we have been trading in (35-40 cents) has predomintly been as a result of the major institutional block / cross trades that took place over the last few weeks.
Just my own theory, but I don't believe it was a coinicdence that shortly after CRE published it's last update communication on December 18th (although very vague, still provided some confidence that we are "close" to a deal and permits), these significantly sized block trades started to pop up, usually cross traded at in and around 37 cents. I would like to believe that we are currently in a period of institutional accumulation of shares. Knowing that Canaccord has amassed a significant amount of shares as our financial advisor, they are in a great position to setup these trades with other institutions / major investors, and this is what I think happened the other day on the largest volume day we had in history. This was clearly a controled transaction as otherwise this amount of shares being traded onthe open market for such a low volume stock would have caused a massive move in the share price. No way would we have stayed in such a tight range if this wasn't orchastrated.
So what does this all mean? What I think it means is that the major institutions are getting ready for the invetible move up in the coming weeks / months. Unfortuntatly, us little retail investors don't have as much experience and insight as they do, so we pick up shares here and there over what sometimes is months and years. Institutuions don't let the money just sit and stagnate in a stock for that long, they wait until it makes sense to funnel money into a stock and this is prime time for CRE. Unfortunately, the net result of this strategy is a tight range that the stock trades in as no investor wants to pay a 10, 20, 30% "premium" if the institutuons are getting in at ~37 cents, so in beteween these massive block trades, retail trades a few thousand shares here and there.
All of the above is just my thoughts and theory around what may potentially be going on, so DYODD.
Clarifier wrote:
So....the entire industry but us has been recovering lately. I think we need to look at the message the market is saying. I am worried NMX has shrouded Quebec as a no fly zone from its incompetence. If the government under Fitzgibbon does not quickly stop the bleeding from NMX and show the government is pro-lithium and ready to help the industry then its over. Sorry.