is there news iminent?, page-11

Recent activity in MEL reminds me of a similar scenario in PNA some months ago...

In fact, we see similar placement driven activity all the time.

Different sectors, granted...but the rise in MEL just prior to the placement, then period of range trading as the newly created stock washed through the market at a profit, is more or less what we saw with the PNA placement at 15c and is perhaps reminiscent of similar plays we see at the cusp of many re-rating stories.

Thursday's apparent breakout of the recent trading range, looked for all the world like that seen in PNA when she finally broke free of her "placement" impacted flat trading range.

Whilst such activity is annoying to longer term shareholders, it is just the way the game is played for the lucky few at the "sophisticated" end of the market...who not only get to sell a few into the big buying surge (manufactured by the way), prior to the placement, but then als get to sell whats left at near guaranteed profit.

To befait though, such activity helps drive the market and in all reality, the Company eventually wins out, raising funds quickly and easily on the back of a near guaranteed profit for those sponsoring the placements.

As retailers, we get to watch our stock stagnate for a period...but then, benefit from the aftermath via a relatively quick appreciation of the stock back to the highs reached prior to the placement ploy.

Timing an entry around such activity can be very profitable.

Another benefit is that shareholders can use the selling pressure to buy more stock at levels cheaper than would otherwise have been thecase, especially those who might have missed the initial spike due to its typically, overhead free rapid rise.

It looks to me like most of the placement stock that is/was available for "washing" has in fact been washed through the market...and whilst new selling pressure will likely appear at many levels on the way back up, when she finally breaks through the recent highs, it should be an all-new ball game.

Cheers!