You would do well to note that I have cast no aspersions toward the company, I have simply suggested a stock that has just announced some positive news and experienced a market reaction in excess of 100% in the first 15 minutes of trading, which then inevitably retraced, has gone into trading halt for a likely Cap Raise. That isn't exactly a far stretch is it? Evidently, said company is low on cash and is in the market end of exploration. To me in my 10 years of trading experience that suggests an opportunistic cap raise. There is nothing fundamentally wrong about that comment whilst they leave the market in mystery. Any one of you that hasn't already considered that possibility is possibly a little naive. Even if the drilling is funded through a JV there is still the issue of G&A costs. According to this thread there is a burn rate of ~$200k they have approximately 5 quarters of cash on hand. That is not healthy, and a sudden spike in the share price is going to be very tempting for a BOD to do a cap raise. If you are a long term holder would you prefer they wait another 6 months and hold say $600k in cash with a dwindling share price to do a cap raise then? Surely not. Seize the opportunity as the market presents it. This is how exploration companies work.
As for any suggestion I am trying to talk the stock down to buy in cheap. Could not be further from the truth, I would rather see it go parabolic so I can scalp a few grand quickly with a 5 minute trade.
Here is the newsflash for you guys, this is a binary outcome on my original comment of a Cap Raise. Stock is in trading halt. So, either I'm right and the market will react accordingly without a single care for me suggesting that it will likely occur. Or I'm wrong and the market will react on the alternative news. How can I be down ramping something which is not even on the market? Just take one look at my history and you will see it is not my MO. The price cannot move right now, nor will my suggestion of impending news hold any bearing on the outcome, nor the the news itself. Either way, I will move on, either with a trade or two or nothing. I am happy to be wrong. I have no intention of talking your stock down, and wish you all success with it.
