It is a fact of life that the stockmarket attracts institutions,hedge funds,super annuation funds,daytraders,longterm retail investors,mums and dads and not necessarily in that order of importance and plainly gives the market liquidity .
I guess that AGM is subject to more violent swings in its share price than established producing nickel miners .
A quick comparison in percentages for the dates 5 June 17 August and to-day show resp. for AGM,JBM,SMY the following percentages
50% down,25% up.
40% down,22% up.
32% down,26% up.
It shows that the market is irrational and in the current volatility stakes doesn't give a tinkers cuss whether you are a producer or not .
Plainly it treats a non producer much harsher ,yet JBM which has a superior balance sheet -loads of cash ,no debt -than SMY still gets shafted more than SMY.
Go figure !!!!.Irrationality,mixed with fear and opaqueness rule this market .
Whilst it is true on figures provided by the company that AGM should produce 8500 tons of nickel concentrate per annum,their start up in 1st calendar quarter of 2008 would only allow them to produce/ship at best say 2500 tons or hopefully at worst say 1500 tons for the financial year ending 30 June 2008.
Looking at the charts the decline below 50 cents recently has put paid to the existing 4th wave .
A temporary floor has been established at 60-62 cents as previously mentioned and a new wave one has been established ,to-day's close at 62.5 for the low of the day is not promising .
Make up your own mind.
With 45 minutes to go the DOW futures are up about 40 points,another wild night in the offing???.
AGM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
