Wow, what an announcement from Pryme! This company is now valued on the ASX at about the same as the money they hold in the bank - I do not think that there are too many other companies listed in a similar position. Add to this the up coming results from the 3 wells they have recently completed and the market should be looking at some more big volume trading days.
I am not sure as to whether Patersons Securities Ltd are the ones selling. I am sure that they have a deep understanding of Prymes business having underwritten the last rights issue offer in July and they are not in need of cash. I can imagine that many holders have had a rough half year holding Pryme, as they were trading under one cent, and that they were looking to get out as soon as the stock price went u - which it obviously did with the announcement this morning. Totally understandable.
The announcement will spark interest in Pryme and a few investors will be sitting on the sidelines waiting for the outcome of the new wells before they press the buy button. This announcement will have investors taking a closer look at other junior oil plays similar to Pryme who hold prime land in America's oil rich areas.
The market is a bundle of nerves at the moment and oil with its lowered value over the past couple of months has been hit particularly hard. I think we can expect to see a few of these juniors getting snapped up as sophisticated oil investors realise they are holding.
It is definitely going to be an interesting month for Pryme...watch this space
PYM Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
