This will be the biggest volume days in years and on what kind of news? A partial refi of a known facility with some extortionist rates and roll price?
No this is not the kind of news for a 100% price rise and a record trade volume.
So, why the craze? Yes, copper is up a bit but that is the standard end year Santa Claus rally. Most commentators (no, I don't take much stock in them either) will say that demand is really down and the commodity prices look grim for 2009.
So, why the jump with attendant volumes? I certainly don't trust this baby. I am a long term sentiment guy because I still believe in the long term commodity cycle with China ascendant. But I am not in until this cycle turns and PNA survives. Yes they supposedly have great management (I believe GXB who seems to have a fair bit of useful info on PNA) and I think they will survive.
Now with this facility roll it is a message crafted to look good within the facts. But lets be truthful. If it were a 'real roll' then the facility would not have a step up at end July. This is a partial roll with large incentives to get GSJBW repaid.
The real news will be in four months or so when PNA get a new facility that lets them pay out the GSJBW facility. Or not. Either way, that is the real news.
PNA Price at posting:
15.6¢ Sentiment: LT Buy Disclosure: Not Held
