According to his newsletter, JS says he doesn't trade the stocks he covers. Not impossible and a claim you wouldn't want to be caught (in his position) telling fibs about either. Not all brokers were "traders" that I knew in the past (not that he is a broker anyway, of course). Still, it's easy to imagine someone in his position would be trading, but I for one won't presume this in face of his clear statement that he does not. In any event, I still feel it was an odd call.
There were closer to 6 m shares traded in POS the day following his sell recommendation btw, not $3m. Even still, selling did not last and that is not big volume given the share price and his readership. If the 3rd drill hole results still waited for, comes out with another juicy intersection on top of hole 2, one would surely expect some pretty big interest and volume. I'm not trying to ramp this stock - as some seem to say when anyone says anything positive here (a few positive or negative views here will make bugger-all difference), but an exciting prospect at EA Nth would have to be worth getting excited about. For the time being, sentiment is improving in the miners and a few cents on the share price could happen in no time at all. We'll just wait and see. One thing I feel is fairly "certain" of (if one can be certain about anything) is the relatively small amount of money POS will need, will be easily found if the nickel climate improves and some good drill results are still to come. I'll leave it to others to expand on "nitty gritty".
Yes, obvious chart resistance circa $4 .... and a convincing break north could see SS preliminaries underway. Makes a nice change to have a sense of a bottom in place... A plunging LME stockpile would be rather nice too!!
POS Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
(20min delay)