Comments regarding AMK marketHello all. This board has really come alive over the last few weeks. As has AMK's price and market cap.
Stockmoves1 you deserve some much earned praise as you have done a bang up job of keeping things real and also in contributing to the flow of useful quality commentary. You are clearly the real deal and are serious about this. Thank you for your time here as you have made a substantial commitment. I am a believer and am following your play by play analysis.
My opinion for what its worth and my take on the latest market action specific to AMK. Some factors at play right now. I hope you find this post worthwhile.
AMK has a larger float than TUD, and for that matter TUO. Any of those that have followed this play for awhile will know that this is because AMK has been around considerably longer than TUD and also as compared to TUO because, unlike TUO, AMK did not roll back and consolidate a few years back. Roll backs in the mineral exploration sector have the nasty reputation, well deserved I might add, of wiping out the existing shareholders who are unfortunate enough to hold a stock prior to the roll back. I suppose TUO did what they had to do at the time. I give AMK full credit and praise for not doing this to their shareholders. AMK then has more shares out and this can be both postiive and negative depending on what angle you look at. A larger float is attractive to institutional and larger players as it provides reliable liquidity related to being assured of being able to enter or exit at will. On the flip side, a larger float can mean more shares to stand in the way of a run upward, but can also moderate and cushion price plunges. Volatility with wild and rapid swings upward or downward are often softened. This has been very evident with watching AMK as opposed to TUO. TUO has gone wildly and quickly upward at times and then just as quickly has rapidly plunged in price. Giving TUO holders rushes of exciting adrenalin when rising and on the flip side, heart palpatations and a cold sweat duing the plunges. AMK not so much as its more moderated. TUD is more in the middle of these two scenerios. TUD is also the operator of the Treaty Creek joint venture and as expected, has been the stock that typically leads the moves upward or downward. AMK and TUO follow TUD market action like obediant puppy dogs. No, I am most certainly not calling AMK and TUO dog stocks so don't attack me on here for that comment. Lol
Some opiinion specific to AMK market action that I have observed.
AMK has an abundance of warrant holders who are likely celebrating right now as their warrants are seriously in the money. Congrats to them. Good foresight in buying into AMK long ago. I believe what is happening right now with AMK, and not so much with TUO and TUD, is that many warrant holders are exercising warrants right now. I am guessing that some of those warrant holders are selling some of their present AMK position to fund the warrant exercises. This theory has been confirmed as I have recently spoken to AMK IR and they have indicated that the flow of warrant money coming into the AMK treasury is very robust right now. This has the effect of flattening the stock price with the result being that AMK is lagging right now. It also appears that some large entity was also aware of this warrant activity and on Thursday and more particularily on Friday decided to take advantage of the situation. They capped the AMK market by placing a substantial block of stock up on the ask in an effort to spook the unaware. This had the effect of not only spooking those unaware but also accelarating selling by the also unaware who are trying to raise warrant funds. Predictably, the price of AMK stepped lower and lower as sellers underbid each other in a rush to raise funds. This in spite of TUD moving upward. A common term is "shaking the bush" or "fleecing the sheep". Ignorance is expensive in the stock market as the sophisticated are good at what they do. Why would an entity do this? Several possibile reasons IMHO but likely to accumulate more AMK on the cheap from unsuspecting nervous sellers. Fleecing the sheep. The wolf has his lunch. The wolf makes lots of easy money from the unaware as the unaware trade away their future upside.
What would be great to see is someone beating the wolf at the game by gobbling up the manipulative wall. Eat the wolf alive. Eat the wolf's lunch. If that wall gets consumed and the next wall gets bought up and the wolf has the townsfolk put the run on him then his manipulative games are over. The succesful wolf hunter also grabs a nice position in AMK in the process. The wolf hunter wins and as a result the sheep win. Will this happen Monday or will the wolf continue to do his dirty fleecing work on the nervous sheep? The AMK flock of sheep needs a well financed wolf hunter. Some of the AMK sheep also need to wake up!
Maybe the comments I have made will help some of those who were wondering why AMK has lagged a bit or why AMK didn't rise on the very posiitve news that TUD just released. Perhaps this will help to assist in understanding the scenerio I believe we are in right now with AMK.
Whether the wolf gets what he wants in his fleecing scheme or not, I believe this is short term. I think AMK has the potential to power higher. Potentailly much, much higher. The drills will decide that. But judging from the first 2020 results I like the odds quite a lot here.
One other factor that impacted the Friday market is that Sprott stated in his webcast Friday that he is going to be buying more TUD soon. I think after hearing that webcast many on Friday were trying to get ahead of him and buy more TUD before Sprott potentially moves TUD higher. Of course, if TUD moves higher it stands to reason that AMK also moves higher.
All 3 joint venture partners are positioned for greatness here. Sprott is incredibly well positioned for greatness here as he owns all 3. Congrats to him for recognizing the opportunity early. He is a billionaire because he is smart and tends to see a win way before the masses do.
Good luck to all the shareholders of all 3 partners. I believe we have a major winner here. An exciting remainder of 2020 ahead. And...don't let that hungry wolf fleece you and rob you of your upside!! Spread the warning to your unsuspecting or unaware friends and gather the townsfolk and pitchforks!