MrPeaman, awesome chart, top quality. If this thing does get through 0.40 cents, you are right new highs for all open up and then everyone who is on board is happy, if that is in the coming week/s then it will make for an interesting situation. The fundamental reasons for upside are well known, so technicals are for me are where the opportunities lie. With volume and price breakouts this thing is in an upward trend, and we need some down / sideways days, it is how the market works. Here are a few points that spring to mind technically.
1. With the underwriter secured the chances of going lower than 0.25c are near nil till end of Jan at least (all things being equal), otherwise the underwriter simply buys down there as a hedge or to make a few dollars themselves.
2. While there is a massive overhang of options weighing on the market (look at today's posts on another thread as an example)this provides those with a medium to long term view a great buying opportunity. After all the options is the only reason we are being allowed to buy the shares and options down here in the first place.
3. In addition to buying the options down here prior to a TSX listing (touch wood), another trade is to buy the options at somewhere around a few cents, exercise straight away, and once you own the heads you can simultaneously sell the heads and buy the options if they continue to price the way they have and provide you with profit, as many times as the opportunity exists (I suspect it won't last too long, but you don't have to do it too many times at 0.01 to 0.04 cents difference between oppies and heads to make a few dollars). The new volumes being traded are starting to allow this, and worst case scenario you own the heads at a couple of cents higher with little risk of heading south of 0.25c pre end of Jan anyway. I know funds are an issue with this strategy, but the higher the share price goes the more of this I think you will see.
I was surprised with the price action today, but the market constantly surprises so please take this post as my opinion only, and make your decision based on your own research, for it is without doubt one situation with risk attached. I do feel privilaged to have read the posts of those who have provided great fundamental analysis for me to investigate, to name a few thanks basiljones, jeet, prfl, glow and YT (YT your posts are legendary). Finally these situations do not present themselves too often, for those who hold enjoy the ride till the end of Jan 2010 and then beyond, it could be very profitable and certainly very interesting!
Disclosure: I hold oppies, and if this price action continues will be exercising sooner rather than later.
WCU Price at posting:
28.0¢ Sentiment: Buy Disclosure: Held
