"Buying for bbi seems to have died off in the last couple of sessions. Beppa on the other hand just got a run up! beppa just hit 16c back down to 14.5 now. BBi had dropped off to 7.2c. Any explainations on the increase of gap? Fears of dialution in a few months time? "
The fear of dilution will put a cap on BBI. There are less risks in BEPPA and some deffered interest factored in.
But to put things into perspective: BBI(2weeks ago)=6c + 20% = 7.2c(now) BEPPA(2weeks ago)=12c + 20% = 14.4c(now)
in that sense they are performing about on par, though BBI has been more volatile(touching 8c now down to 7.2c)
but using the 20% example, because BEPPA has 2x base price, the SP will rise by 2x for same %gain. So the gap will continue the widen(in $terms, not %terms). Eg if BBI goes up by 5c, i would roughly expect BEPPA to increase by 10c.
Ofcourse BBI and BEPPA shouldnt follow each other that closely, but history says that they do. chart the 2 together to see.
"seems like volume has switched between beppa and bbi,"
volume is still low in both, i suspect 1 big buyer of BEPPA.
"Do you think fundamentally the gains for beppa can be sustained? Just want to hear your thoughts/opinions as to thw switch in volume."
If its only 1 or 2 buyers causing the spike, it is unsustainable. The second they stop buying the market will correct its self because the average person doesnt want to pay 15c at this point in time.
Someone with $50k can do what happened today, so we are not talking hugely significant move here.
just my ramblings, cheers.
BBI Price at posting:
7.2¢ Sentiment: LT Buy Disclosure: Held
