With 700,000 on offer at 20c a 100 lot trade is just a joke, the ASX should not report it , as I mentioned a few days ago when they were occuring at 21.5 and 22c I said it looked like a sign of weakness ... here we are with gold trading at 2 week highs and the stock is heavily offered at 20c ... a 10% fall , the genuine prive level to me at the moment looks like 18.5/19 ... the placement price plus a small margin. The placement has stopped any price increase in its tracks ... news is required , and with delays all throughout the mining industry those holder expecting news " any day now " are likely to be disappointed ... hopefully they aren't long with borrowed money / margin etc b'cos time is working against them.
On a brighter note the gold price looks good and the latest Fed cut will only further entrench USD weakness and with it gold and commodity strength. On a better note for me our NZ dairy giant Fonterra today announced another 50c increase in the forecast payout for each Kg of Milk-solids ( $6.40 to $6.90 .... previous record $5.33 in 2001 ) , due to increased world prices primarily because of grain in the US being fed to bio-fuel plants rather than cows and the continuing struggles of the Australian dairy industry due to drought .... the company I am a director of will produce 4m kg/MS this season ... so another $2m straight to the bottom line .... NICE !!!!!!!
Good luck to all KAL/KALO holders ... but don't expect fireworks til next year.
KAL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
