Wow, what an announcement from Pryme! This company is now valued on the ASX at about the same as the money they hold in the bank - I do not think that there are too many other companies listed in a similar position. Add to this the up coming results from the 3 wells they have recently completed and the market should be looking at some more big volume trading days.
I am not sure as to whether Patersons Securities Ltd are the ones selling. I am sure that they have a deep understanding of Prymes business having underwritten the last rights issue offer in July and they are not in need of cash. I can imagine that many holders have had a rough half year holding Pryme, as they were trading under one cent, and that they were looking to get out as soon as the stock price went u - which it obviously did with the announcement this morning. Totally understandable.
The announcement will spark interest in Pryme and a few investors will be sitting on the sidelines waiting for the outcome of the new wells before they press the buy button. This announcement will have investors taking a closer look at other junior oil plays similar to Pryme who hold prime land in America's oil rich areas.
The market is a bundle of nerves at the moment and oil with its lowered value over the past couple of months has been hit particularly hard. I think we can expect to see a few of these juniors getting snapped up as sophisticated oil investors realise they are holding.
It is definitely going to be an interesting month for Pryme...watch this space
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