director buying , page-6

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Mantle Mining (MNM) Directors Load Up!

I posted about Mantle Mining (MNM) last week and in that post I expressed some doubt about the future price direction due to the volatile nature of the stock as well as the past history of the company. This was despite the very positive news that has recently been flowing through.

Mantle Mining's Bacchus Marsh coal project is beginning to look very compelling now but since my last post there has been a pull back in the share price. The selling though has been quite mild and lows of 5.2c were made yesterday. Since the tonnage upgrade to the upper limits of 1.8b for the Bacchus Marsh project was announced last week, there has also been quite a number of director buying notices.

Here we have a notice stating that 100,000 share were acquired by Ian Kraemer. Here's a notice for Martin Blakeman stating that 300,000 shares were bought. Here's another notice showing Martin Blakeman buying a further 600,000 shares. Stephen de Belle has also been busy loading up with this notice showing that he bought 410,000 shares, and this notice showing that a further 530,000 share were bought.
With the level of director buying that we have seen over the past week and the mild sell off since the rally last week, I am beginning to think that this stock is about to get re-rated in a very big way. Today we saw a late buyer scramble right on the close and it was the first rise in the share price since last week.

The gain made today was a very modest 5% but we saw a close at the day's high of 5.8c and the chart now shows a small hammer candle which is a bullish indicator.

Demand for coal in China is currently very strong due to the harsh winter climate and their booming economy, whilst stock piles are running low. This demand peak is forcing many electricity generators to start rationing coal in China. At the same time, flooding in Australia is hampering the supply side. Those two events alone will force prices higher and this now starting to be reflected in the share price of many potential coal exporters like Mantle Mining.

Now is a good time to buy in my opinion.