Continuing to spiral down

Hi Tdman1 – a very poetic post from you this time around.  I thought that I would add to this thread notin order to cause the OGX LTH’s any more pain but to hopefully add to the priordiscussion regarding the possible direct effect on the SP level of the Magna CNconversions.  I’ve provided a chart belowthat shows the first two Tranche A conversions and the price and volume actiondirectly following these conversions.

 

 

 

It is quite obvious to me that post each conversion the SPhas dropped to lower levels on increasing volume.  Some may say that this is a mere coincidencebut I’ve learnt the hard way that it is wise to not ignore what the chart istelling me.

 

You described the price action as a spiral down, but I thinka more appropriate description would be a “forced managed decline” to what ishopefully a “soft landing”.  Theremaining SP gap from the 2.5c to 2.6c level seems to be providing ongoing supportfor the time being.  Magna has nowconverted approximately $306k of the available $2m worth of CN’s.  So they have about $1.694m worth of shares at10% discount left in Tranche A.  So ifthe pattern of price action following conversion continues into the future LTH’scan expect the SP to stay at these or lower levels for some time yet.

 

Of course if the “river of gold” breaks its banks and flowsdirectly into the OGX gold room the current picture described on the chartcould change quickly.

 

Good luck everyone – Wilf