Minemakers Limited (MAK) – A Deal Is Imminent Categories: ASX Investment Stocks, ASX Speculative Stocks, ASX Trading Opportunities
If you have been following my site for a while, then you’ll know that Minemakers (MAK) is a stock that I have been following for quite some time. Minemakers has a lot of things going on but the main project has been their Wonarah Phosphate Project. We have followed developments on this project over the years and seen the share price rally to highs of $3 and then drop to lows of 19c around this time last year so it certainly has been a roller coaster ride. My most recent post about this company was made back in early February.
Recently there has been some press speculation from India, about the development of the Wonarah Phosphate Project. The Indian Government owned conglomerate NMDC Limited was mentioned. This speculation caused the share price to jump sharply on a day when most stocks were getting sold down heavily. The following day, the company was forced to confirm that discussions were being held.
On the confirmation of those speculations, Minemakers’ share price jumped to highs of 50.5c and closed at 49c. Trading volume surged, with almost 9m shares changing hands and the above chart shows the initial spike.
Over the course of the next few days, no new news was reported and typically the share price trailed off to reach lows of 45.5c on Tuesday of this week. That’s when there was another announcement from the company. This time the company reported that it had terminated a previous agreement that was signed to help develop the Wonarah Phosphate Project.
Putting two and two together – the breaking off of that prior arrangement was pretty much a signal to investors that an agreement with NMDC Limited was nearby.
Today, Minimakers surged to new recent highs of 52.5c on increased trading volume and that sudden burst of activity prompted a speeding ticket from the market regulator. The reply confirmed that discussions were being held and that the company would inform the market once an outcome has been reached.
Minemakers closed at 50.5c today. Major resistance is now being tested so look for a solid break higher ahead of a deal being announced. http://asxguru.com.au/
AEV Price at posting:
44.2¢ Sentiment: Buy Disclosure: Held
