The price I am afraid is going to sit at 2.70 for at least the next two weeks or at least until the perception of the underwriting entitlement soak up and dump has diminished. We are going to need to be patient which will be hard if we see other goldies start moving higher.......
The sp discount to the offer price for most of the last week means a lot the entitlement offers will lapse and the underwriter will need to take up the slack. Any hint of 2.70 or more will compress the price until the underwritten position is unwound. Remember there was $450,000,000 or 167,000,000 shares under the entitlement offer that needed to be underwritten, and I am not sure that those that participated in the institutional placement would be wanting to dip into there pockets more.
We saw it today. The price stuck at 2.69 all day. Volume 50% up on prior day, it would have been more if it wasn't for the supply side not stacking up, if there was 20,000,000 on the supply side at 2.69 I guaranteed it would have been bought but not for a cent more. I'm surprised even the after market price action didn't soak up all of the 2.69 on offer and finished at 2.68.
I love this stock but regular reality checks are essential in portfolio management.
Time will tell.
RRL Price at posting:
$2.68 Sentiment: Buy Disclosure: Held
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