j p morgan is the seller, page-27

JPM's strategy theory - with a stock as thin as CRK JPM could now be using their holding to cap the stock to ensure cheap placement stock as its more profitable and efficient to accumulate CRK stock on placements than buy on market.

I am also interested to know who the buyer was last week around 64c that seemed sophisticated using a Bot etc that bought around 1mil shares or more I am guessing.....Anyone any ideas?

JPM could get anywhere between 20mil and 50mil shares of placement stock in the next year or 2 as CRK needs to fund production start up.

Imagine trying to buy that exposure on market. JPM in Feb this year bought 7.5mil shares at $1 placement on their evidence of recently selling 2 mil shares pushed CRK down 25% imagine buying 7.5mil shares could easily push CRK up 80%. Using the same numbers buying 30mil shares (which is how many shares could be placed to them in the next year or 2) could push the stock up 320% let alone if there are that many shares in the "free float".

Makes clear sense to me crunching those liquidity numbers that JPM will just hang out for the placements and potentially cap the stock until the production time line is clearer and more of their peers want a slice of the action. These liquidity stats would also be a deterrent to other instos at the moment.

The wait for cashflow could be as short as FY11/12 when the herd will buy this stock and PE's start to expand. I am happy to to accumulate at these levels for the next year or 2. Earning say $60mil after tax profits FY11/12 on 240mil shares on issue EPS 25c PE of around 2 at the moment put CRK on a PE of 10 and you have about price $2.50+ just with the start up mine...

Buying a gold stock on a future PE of around 2 that is pricing only 25% of the current reserves plus exploration upside is a steal that would not normally be available to the public.

The amount of effort JPM are putting into this tiny gold mining company in Australia suggests to me they also see the glaring undervaluation.