another reality check

Let us face it folks, the fall in the share price of MMR this week was always going to happen. It is a combination of profit-takers and nervous nellies, ably assisted by the bots.

A few facts on the number of shares traded, and price at weeks end, for the past 6 weeks:
Week ended 05/11/2010 2,986,797 shares traded closing price 66c
Week ended 12/11/2010 3,406,218 shares traded closing price 80c
Week ended 19/11/2010 6,007,686 shares traded closing price $1.085
Week ended 26/11/2010 5,597,001 shares traded closing price $1.08
Week ended 03/12/2010 2,677,118 shares traded closing price 99.5c
Week ended 10/12/2010 2,713,564 shares traded closing price $1.05
Thus the total number of shares traded was (approximately, there is small rounding factor in the figures) 23,388,384.Closing prices varied from 66c to $1.05.

Now, what does all this tell us?

Given that the total number of MMR shares on issue is 147,704,924 the turnover of 23,388,384 represents 15.8% of the shares on issue. Having regard to the circumstances surrounding the drill and the prospects of success etc. etc. this is not a surprising percentage. It is safe to assume that there is a hard-core of shares being traded so it could very well be that a much lesser percentage of the issued shares are being traded. The failure of the MEO drill has contributed greatly to the nervousness and the consequential fall in confidence.

This means that at least 84.2% (and probably more) of the shares on issue have not been traded. Read into that what you will.

Do not forget that there are sharks circling out there (and I do NOT mean around the Ocean Patriot)