I'm a big believer in PYC and rate it as a strong buy, but I thought I'd play the devils advocate here and look at the recent action....
During the last rights issue when shares were issued at 5 cents, Paterson's Securities were the underwriters and their clients collectively ended up with $1,000,000 worth so about 20M shares.
Looking at the broker volumes over the last month and a bit Paterson's have sold 14M PYC shares (+ an undisclosed amount but I'd imagine there would be a few more M).
So the question to ask is, is this recent spike in volume and Price purely and artificial increase in order to provide an exit for Paterson's wholesale clients who were issued shares at 5 cents in what was a pretty illiquid stock?.
and once these guys are gone, what will happen to the liquidity?
PYC Price at posting:
7.0¢ Sentiment: LT Buy Disclosure: Held
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