Could this be - hopefully this is - capitulation. The final surrender that flags a recovery is on the way. Eventually --- and climbing a wall of worry and fear!
People all around the world have been badly hit financially and world slow down is for sure. A recovery will be slow and protracted. At least as protracted as the present grinding down of markets and economic systems.
Today heralds the end of third quarter 2008. Traditionally Anvil share price moves in anticipation of quartery reports due at the end of October - early November.
It is very likely that the next two or three weeks will see the low for Anvil share price. A likely time to buy.
Anvil has been tightly held ASX but TSX not so. One might wonder whether there is a corporate play in Canada - stratigic short selling to keep selling price low and lower. A possible softening up for a take over --- or other such objective? A softening up to srengthen Anvil management bargaining position at the Congo Contract Review?
The share price low may well coincide with the release of Contract Review which if not seriously damaging to Anvil should see the beginning of a steady recovery in share price.
A healthy profit for first quarter 2009 should see some respectability in the share price. Towards the $12 mark in April may be an optimistic target but not unrealistic.
AVM Price at posting:
$6.35 Sentiment: ST Buy Disclosure: Held
