As you guys know me and Q aren't fans of each other but you can bet when we agree on something it's a lock.
Over the past few months I've had to laugh at some of the posters comments on these forums of market manipulation or the big boys are knocking it down. The volume of AGY the last few months has been a joke. Even on the big days we barely cracked 1M in value. You need major inflows to move shares up. What trading your seeing is simply the market trading in a thin volume stock. Yes...it sucks.
Supply and demand. If there are more buyers than sellers the stock will go up.
I'm sure there's been the odd funny trade. With such low volume, a 100,000 sell order (Only 4k!!) can knock down the value of AGY down 500k. With that said...I'm not a fan of the ASX /ASIC tracking systems but, I do believe they'll catch the bad guys in the end if it's done over and over as per this article... http://asic.gov.au/about-asic/media...271mr-nsw-man-jailed-for-market-manipulation/
So....!!!!
As I've been saying the past few weeks...the only way AGY is going to go up, is new money coming in. The news from AGY has been beyond great but with no new buyers...they can find a 10B resource and without new investors...the stock's not moving. This roadshow is incredibly important and I've been bugging AGY management to do it for a while. They know this too and now it's HERE!!! We need 5-10M in new inflows to AGY and the road show will do it.
I've mentioned a couple times I used to be a analyst at a Toronto broker a million years ago. The TSE and Canadian market are so similar the Australian in the resource space. We were a mid size firm with 100+ brokers. These juniors would do these road shows (we called them dog and pony shows) and told us their story. If they were a gold stock the CEO would bring on a 100oz gold bar or if it was a diamond company a million diamond they just cut out of the ground last week. Plunk...on the table they'd go. I loved when they did pass around!
Time after time I'd point blank ask them...if this is so good...why do you need us to promote your stock to our clients?
These are the reasons. The juniors need the brokers as much as the brokers need them.
-A broker...depending on it's size and reputation reviews the company from top to bottom and asks the hard questions and normally has hundreds of years of experience behind them. Once a broker say this is a buy...it makes all those press releases legit. I mean...do any of us really know that much about Argentina lithium mining? Really?
-Everyone in the meeting asks questions...remember that these guys have seen it all before. On every part of the planet. Half our guys were in their 50's and 60's so you're looks at guys who's been doing it in since the 1950's. "Who's your staff?"...Steve Soso. "Oh! Steve is with you guys...he still have the bread?" (that's not a simple dumb question- How the CEO answers that tells us 3-4 different things.) What depth are you finding solid grade? etc,etc. One of the bosses will normally come out and ask point blank...so you think you really have something here? I strangely remember those mounents as the 30-40 guys all went dead sleint waiting for not only his asnswer...but HOW he answers.
If the CEO lies...his career is done as everyone talks to everyone...even today. NEVER LIE TO THE MONEY! They can find out more in 30 mins then 1000 posts on HC.
-Then after the meeting the boys will have a chat...make some calls. Like the town's heavy machinery dealer to see what equipment this company is renting etc. The guy in the shop tells him what he knows and he's given a solid tip as he has a stock portfolio (he's not out in the middle of no where not to make money) Full on stuff. They look into the management's last 5 deals etc.
Then the bosses of the brokers will have a finial chat and they give the ok. Like the Godfathers saying ok... This process can take a day or a week. The firm and/or brokers will quietly start buying. In some cases become the maketmaker. Now it's all computers...back then, it was 4 guys on the trading desk and 3 guys on the floor of the exchange. All bloody pros.
-They there's the cool part...The brokers literally pick up the phone and tell their clients about this great stock. If the presentation didn't have any confidential info, the brokers would buy for their accounts first. I sat beside the big loveably Swede Arni. The guy would have 5M shares sold by lunch. When he talked...you had to buy. He knew it all and taught me everything about the markets workings.
-The other big reason the company needs the broker is they might need to do a CR or RI in the next year and letting the brokers get in on the ground floor is just the name of the game. Sometimes it's a bust but, these brokers and now funds...know what they are doing. They do the checking of facts for you.
So when I here that AGY is having roadshow this week. Well, that's 10 better than a DD or new land as it's bringing in new money. With AGY's MC under 25M...it's not hard to see a few new 708's becoming 5% ers...If a broker is involved you could see a research report in a week or 2 with a target price. These are, as many of you now very conservative and are normally knocked up a few times. Then it just snow balls as the price goes up. I got to get AGY...at any price.
So yeasterday and today...these meetings are happening and the process has started.
If your a AGY shareholder today...congratulations...you're on the ground floor of a Disallowed.
AGY Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
