Hi Zz’s. I could make a guess that the Canadian projects were not as good a prospect as what they are “persuing” in Africa. But that’s just a wild guess. They obviously feel that they can get Burundi back thru the courts and possibly have something in Zambia that is as big as Burundi. (At least that was what was rumoured earlier in the year)
The options conversion is a bit more difficult, they appear to be some of the 7,100,000 issued in the appendix 3B announcement dated 31 July 2006 as Director and employees incentive stock options. These are the only $0.10 options. These can be broken down as follows. 5,750,000 for Directors and 1,350,000 to employees. My guess is that they were sold on the open on 31/10/2007. I happened to see a 500k order dumped on screen pre open that morning & the tick data for that day shows 500k going thru at $0.45 on the open. The date on page I of the appendix form was 24/10/07. Allowing 5 days for it to be listed the 31st works out about right. It could have been the director who resigned or an employee. Who knows. I hope its all been done & dusted anyway or we can probably expect to see some selling soon.
Today’s price action was pretty slow. The announcement by the company to dump the Canadian projects didn’t really have that much impact. The final sell down of 24,800 shares to $0.67 happened after market & involved a broker doing some crossings so I havn’t decided yet if that was an attempt to shake out some nervous nelly’s tomorrow or just a trader getting out. Either way with only 87,416 traded today it does not appear that today’s announcement is going to be a trend changer and the retracement from the week’s highs looks to be pretty normal at this stage. Looking at today’s charts the current support looks to be still at around $0.65 - $0.67 and resistance at around $0.80. (The p & f charts shows $0.80) The run up to $0.80 has filled in the gap made in June. The current pull back is looking like a normal pull back. Maybe the sp will keep coming back down due to a lack of info regarding the African projects mentioned in today’s & the last few announcements or maybe $0.65 will hold again. The next support levels down are the 50% line at $0.62 (The p & f chart shows it at $0.63) and the 61% line is down around $0.55 (There is a large buy order at $0.55 for 355,000 so maybe it will be pushed down that far). Reading today’s “progress report” it is apparent that the company is focusing on South Africa. The announcement on 21st Nov is as strong a hint as one can get that something is going down and is possibly very close, otherwise we would not have seen the sharp spikes in the sp this last month. Despite the “minnow” status put on the company I think we are in the box seat atm & I am looking forward to a good xmas.
AGY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
