one steel and bhp, page-24

Everythings nice and quiet on the western front so I thought I might as well put my two bob's worth in.

APG's announcement was well pitched to settle some nerves (or "verves") and it worked well for the smaller investors.
They confirmed that the HOA was binding, as is every signed HOA provided that conditions are met.
Fulfilment of the conditions will then escalate the agreement to a contract.
That's what the market is waiting for, a signed contract.

There is really nothing new in the announcement just confirmation of what we all already know.
As the days tick by in June we come closer and closer to the elusive signing which has dogged APG many times in the past.
Traders and punters alike will take positions as the time left in month of June decays.
A little like trading time decay in options, only in reverse.

There is really nothing new in the announcement, it's only re-affirming what has already been stated.

The BHP contract, when signed, is similar to a placement.
The difference is that placements are usually at discount prices whereas this deal is at a premium.

How many times do we see the SP drift away after a placement - nearly always.
How many times do we see the SP come back to the placement price - nearly always.
And then the SP takes off.

I believe that is exactly what the SP will do here.
As June ticks by we will see the SP edging closer and closer to the placement price.
Traders and punters will bet on the contract being signed.
Once the formal announcement comes out the SP will rocket and 20 cents will become history.

I say it again, the HOA terms & conditions must be met before it can become a contract.
Just look at the last announcement from GDA and POL.

In the mean time, sit back and watch the SP creep up.
Watch for major players trying to jostle their positions readying themselves for the next jump.
Watch for a spike in volume as news about the contract leaks out.

Of course that assumes that it's good news and the price is rising.
If the volume takes a hike and the price is falling then I refer you to GDA & POL.

The market wants the contract signed.

Good luck to all, and me, for your patience during the month of June.