I have been watching and researching vlr for a few weeks. It was listed at 20cents not too long ago and had drifted to the 11/12cents level where it is at the moment. I found out that there was 1 persistent seller who managed through shareholding in another company managed to get the stock for cheap and have been selling to recoup the losses in the other company. I hear that the seller has been selling all the way down to current level and running out of stock soon. It has not helped with the year end selling as most people would have got them at 20cents issue and would like some losses. Once he is out of the way (and tax selling out of the way) hopefully we can see vlr going the other way towards 20cents and beyond.
On the fundamentals I have had a look at their tenements and they seem to be very promising- have a look at their website. Vlr will commence driiling in July and that’s only 2 weeks away and past the tax selling season. Vlr has indicated that the company will drill very month from July to Dec- so this should first of all prop up interest and keep it going for 6 months. Initially we are looking for a bounce up to 20cents and depending on results will reasseess later. So at the moment at this level fundamentals look ok to sustain current price and 20cents and above. If we are looking at purely numbers then it was only back a couple of months ago thaat the company was issuing shares at 20cents (so unless they have spent it very quickly in the last couple of months, theoretically the share should be woth still about 20cents- ie even if we break up the company today there should be about 20cents per share left ie must be undervalued at the moment). Then if we consider their tenements and also their drilling program, the shares must be over 20cents at the moment.
Looking at the market depth, there is good support at the 10 to 11cents level and building up. And there is not much stock going up to about 16cents. It has been at this level since start of the tax selling season but I feel it will move soon. Another thing which interest me was the build up in the market depth of the options vlro. When I look at it a few weeks ago there were sellers at just below 3cents and finding hard to sell. At that time the shares were at about the same level. Now if you look at it the shares are still at the same level but buyers are at 3.5 with a million wanting at 3. Last few days people were paying up to 3.9cents. So why would you buy the oppies with shraes sitting at 12cents. Admittedly the oppies have quite a few years to go, I think at least two but possibly more and exercise is 25cents. The other reason I can think of is that they are getting set for a reasonable increase in price. I guess it is possible if the stock moves to 20 cents then the oppies could be at 5cents providing excellent leverage on current price.
I believe vlr have been sold down unreasonably and in particular by one individual. The company has just listed and not even commence the drilling program. I can understand if they have had a go and their tenements are no good and they are sold down. But nothing has happened and their drilling program is just starting. So it looks very good potential.
Have a look yourself and research to see if you agree.
