My gut feel is that the flooding type of recent sell-offs was most likely due to margin related forced sales and not hedge funds. I would expect hedge funds to be more persistent - if the price fell so easy and rapidly, why would they not push it even lower?
There is also a possibility that there is some general rotation away from resource stocks, following the broad brushed rush to resources, particularly when the financial stocks were under pressure, and also possibly a less positive view of resources, reflecting a developing view that there will be a softening in the world economy, with adverse consequences for resource stocks.
Additionally, there has been a drawn expectation about the start date of mining operations - I remember seeing very assertive comments on Hotcopper going back to mid January that the start-up was imminent(like, I've seen a sign about "the start date" at the mine site). Yet we are still awaiting advice of start-up.
PNA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
