over $11k per mississippian formation acre, page-9

hi RichieT

after todays trading there certainly seems to be some support at 40c, as there was before the announcement on 22/12/10.

so the question is who has been buying????

i posted yesterday that Citicorp Nom P/L had bought 475k since the oil play announcement, they have actually bought over 2 million since the reserve release in september.
as you do, you assume that it was their capping order at 45c and probably at numerous other points on the sell side today.

well, i got a top100 today and it really is starting to paint a very interesting picture.

since the last top100 from last week there have been only 3 trading days, last tuesday, wednesday and thursday where the trades have been completed.

in those 3 days Citicorp sold 5000 shares??? interesting considering they only just bought 500k at 44.5c.

the 2 main buyers in that time were JP Morgan and Merrill Lynch!!

JP Morgan bought 196k recently but since the end of september they have bought 1.4 million

the other buyer was Merrill Lynch, they bought another 116k in the past 3 completed days but since the oil play announcement have actually bought 360k.

so since our oil play announcement the 3 biggest buyers of RFE shares has been Citicorp, Merrill Lynch and JP Morgan, do these guys often get it wrong???? do these guys have the size and know how to keep an SP at 40c and accumulate, YOU BET THEY DO.
do these brokers have the ability to make RFE look sick and entice out sellers and accumulate, YOU BET THEY DO.

in the past 3 completed traded days there was 1 seller in the top100, who sold 70000 shares, were did the rest of the sellers come from, you guessed it, the smaller nervous nellie investors.

so lets look at these 3 big brokers in the scheme of things, a quick blurb on all three brokers.

Citicorp is part of the Citigroup, a major American financial services company based in New York City.
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP Morgan Chase and Wells Fargo.

J.P. Morgan is one of the world's leading investment banks with deep client relationships and broad product capabilities in Australia. As one of the few full-service and fully integrated investment banks in Australia, J.P. Morgan also provides commercial banking and treasury and securities services, part of JP Morgan Chase, once again a subsidiary of one of the big 4 banks in the US.

Merrill Lynch (Australia) Nominees Pty Limited provides nominee and custody services. The company is based in Melbourne, Australia. Merrill Lynch (Australia) Nominees Pty Limited operates as a subsidiary of Berndale Securities Limited.

so who are Berndale Securities, Berndale Securities Limited is a leading provider of Third Party Clearing services to the Australian marketplace, is ultimately a wholly owned subsidiary of Bank of America Corporation*, a NYSE listed Company, once again can be tied back to one of the 4 big banks in America.

this has taken me back a bit, all we need now is Wells Fargo to start buying and we have all 4 big banks in the US putting a finger in the RFE pie.

Does this make anyone feel better, know i do, there seems to have been major investment coming out of the US in the past 3 months right under our noses and since the large xtrades at 35c the SP has pretty well been expertly kept at 40c, not by 1 but by at least 3 big brokers, all with ties to the US.

sometime ago i mentioned there had been a whisper of an American investor, well, starting to think the evidence says they have been investing but just on the sly.

the buying seems to have accelerated ever since the oil announcement came out, especially these 3 companies.

personally keep going back to these 2 paragraphs from the 22/12 announcement

"In addition, the Company has received a number of proposals to provide funding for the development of the Big River Project. These proposals range from joint venture arrangements with Company,s active in the play, private funding from United States based groups looking to
participate in the play, to offers of direct equity in the Company from US and UK based investors. The Company is currently considering all of these proposals.

In the interim the Company has raised A$5.0 million (before costs) from overseas and domestic professional and institutional investors via an issue of converting notes. The issue closed oversubscribed."

talk of overseas investors in the $5 million raised, OVERSUBSCRIBED, talk of private funding from US based groups and direct equity from UK or US groups.

it then says RFE is considering these proposals?
well i think someone has already considered it and is buying in on market, possibly one of these US groups mentioned, who dont appear to be waiting for a decision from David.

some of this is fact, some my own opinion but i 100% would not be selling out of RFE at the moment, these mystery buyers, possibly from the US seem to be very interested in RFE.
since the big announcement we have moved up .5c since we came out of a trading halt, so far the market thinks these new leases equate to $700k of additional value or $58/acre, yet Sandridge Energy are selling acres in the same play for roughly $11700/acre??

this is not investment advice and PLEASE DYOR, but without a doubt, big players that know what they are doing are trying to fleece the everyday RFE shareholder, they know the value of this new play, let alone what RFE had amassed prior to 22/12/10.

on another note, i have been looking at the technical side of things and i really hope there is a chartist out there to help me but we appear to be right at the pointy end of a massive triangle, not sure what this means.

looked at the gap up on opening on 23/3/09.

if you use the low of the candle on that date as a support line and continue it on until today then draw a line from the top of the candle on 6/8/09 going over the top of the candle on 29/12/10 until it touches the 39.5c line, it appears as if we dont have much more time in this triangle.

looking at the macd for the last 3 and a half months there also appears to be a platform building.

anyone help me here?? sharechaos??

anyway, good luck holders