RE:RE:New Issue lead broker is BMOtheCurse wrote: 1northumberland wrote: Why can't BMO suppprt this stock at issue - $1.68?
So much for BMO being a player imo
Seriously - you are worried on day 1 after the financing that it fell below the financing point?
The reason for the sell-off is that it appears the financing (at a decent price and NO warrants) is due to needing even more funds than previously indicated to finish VL.
*That* is the downward pressure - not the financing itself. Financing was clean - no warrants. 50 day moving average is 1.45. I don't buy into significant shorting either.
Also for the guy thinking that BMO is "buying" this for themselves (sure sounds that way!)...you need to look up how these financings work.
And I see our favourite Moose is again grazing in the "funny grass" pasture again. I actually would enjoy meeting you.
that said, at least a great day for gold itself.
tC
Almost every bought deal financing I've seen has resulted in the price dropping to the financing price. Why wouldn't it? An arbitrager that has access to the bought deal can either sell long shares they own or short for a profit at any price above the bought deal. So I disagree with you - I think the price action is entirely due to the financing (not that it matters).
The financing was clean though. This is an extremely tough financing market for precious metals juniors so the lack of warrants is great. Probably related to the GDX listing - I'd bet the parties that participated in the block sale of CXB shares at one year highs to Van Eck are also participants in the warrantless bought deal.