Naturally there will be a process of absorbtion of those who need to sell ie short term traders. On top of those who got out yesterday, 10% of yesterdays volume saw a fair wack of other poor nervous soals leave today.
I would guess ROY has found its consolidation level as the chart suggests. Consolidation in high 30's and 40's is fine with me.
I know this stock pretty well, and my take is that a lot of those who took part in rights issue made the decision to trade out on the first positive news. Yesterday was the first positive news and their first opportunity to cash in some chips.
Unfortunately this resulted in some panic and over selling and this, indeed will take few days to ware off.
Again, no volume selling today. Nothing sinister.
ROY deserves to command at least a cap of BLR ie 75 mill undiluted based on our uranium assets, and a management who, unlike BLR can bring them to production.
Warriedar was never going to put a bang into the price Pilbara will as I have always been concerned by the environmental process there and approval which could take a couple of years. Having said that, if the resource is good enough, GBG will work pretty hard to make it happen.
Stocks to be in are those on a positive trend at times of uncertainty.
Have a pleasant weekend.
MFE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
