Last week the LYC price had moved towards what I consider the top of its short term trading range and had begun trending down. If there is general market weakness, LYC is likely to come under sustained selling pressure from those large holders interested in trading up their positions. Form 604 disclosures confirm this trading pattern. Trading by large holders will and does move the market with LYC
When a firm such as Pattersons releases a buy signal, I always wonder what they are saying to their private clients. The Sun Herald picks up the story and perhaps sparks some buying interest among the investing public. Large holders may then choose to sell into that buying interest, forcing down the price. As they say "Rinse and repeat".
The game changes on the granting of a pre operating licence but the signals appear to be that this event may be several months into the new year.
This from Nick Curtis in A Finance News Network interview last week.
"Well I wouldn’t like to pre-empt the Malaysian Government’s position on this. We’ve submitted all the relevant documents to the Regulatory Authority in Malaysia. We agreed back in April when the issue really came up with the Government, to a process by which they would not issue us a pre-operating licence which is normally issued as a standard issue, until such time as a full review had been done of all the issues associated with that. They called in the International Atomic Energy Agency to review it, just not to be a regulator but just to give a reinforcement of the safety. It’s a perfectly safe plant as reviewed by all the regulators and we just have to comply with some of the things the International Atomic Energy Agency suggested should be improvements. We’ve done all the documentation; we’ve submitted all that, it’s with the Atomic Energy Agency Licensing Board of Malaysia and we await their outcome."
Recent discussions on this forum suggest that an IAEA decision could take 7 months. That is not news we investors want to hear but these people are not going to be rushed through their decision making process.
LYC Price at posting:
$1.27 Sentiment: ST Sell Disclosure: Held
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