To say that the MARKET has valued Elk at 10cents is IMO not entirely correct. Elk is a very thinly traded share and doesn't require much to move it's price. As an example, based on the current depth, with around $80000, I could increase the price of Elk to 24.5cents. So it doesn't take much for the share price to go either up or down.
IMO the share price is where it is today because of small traders, speculators and small short term investors who have lost patience with the company and are unhappy with the share price performance to date and have moved their funds elsewhere. No doubt the share placement at 9 cents hasn't helped with some profit taking also a likely cause. I also believe that these traders and small investors who have been selling are only the minority.
If you look at the volume of trades that have gone through, you will find that nearly all trades done were very small.
The people in the know on the otherhand ie Robert Healey, Directors and other larger shareholders have indicated that they believe the company is great value at 9 cents by participating in the share placement.
Anyway, only time will tell. Good luck with your holding and lets all hope that Chemical Flooding is a success.
ELK Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
