STTCOMP BKP, FA Long
Baraka Energy & Resources Limited
Market Cap - $7.9M @ $0.003 SP
SOI – 2.65B
A quick summary of recent catalysts:
GTT was involved in the Capital Raise as the Lead Manager to raise $6M at $0.002.
Hustler Investments (along with a few other GTT affiliated entities) became a substantial holder.
Then they requested the company to hold a general meeting to change the directors.
The proposed new management includes Jason Brewer and Pat Glovac (from GTT).
A bit more in detail:
From the peak at 30c in March 2011, Baraka was travelling in a constant downward trend for 7 years. Stock was almost dead since August 2014, for nearly four years, until the 18th April 2018.
Things started changing when a mysterious buyer(s) started accumulating, approximately since the 18th April 2018, i.e. about 2 months ago.
Volumes traded between the 60 days period from the 18th April were quite significant. A total of 333M of shares were traded (accumulated) at an average price of 2.2c. This was an impressive 12.58% (at current SOI) change-of-hands of the massive registry. A summary of these trades can be seen below.
On the 27th April, Baraka announced the involvement of GTT to raise $6M by the issuance of 300M shares at 2c (coincidentally pretty close to the accumulation volumes and average above). On the 4th May Baraka announced successful completion of the placement. It would be reasonable to assume that at least 600M of shares (or nearly 25% of the current registry) were with safe hands by the 14th June (when the next catalyst occurred).
A week ago, on the 14th June, six of GTT related entities collectively announced becoming a substantial holder, accounting for 137M shares (consideration averaging to 2 cents).
On the same day, company announced a Section 249D notice to call for general meeting of shareholders within 2 months to replace three directors with the following personnel:
Jason Paul Brewer
Christopher Jan Zielinski
Patrick Michael Glovac
(No need to explain who these people are, specially JB and Glovac, but in case someone is wondering, a simple googling will tell you)
Key dates relevant to the 249D notice are followings:
Notice of meeting – within 21 days (i.e. on or before the 05th July)
Meeting to be held – within 2 months (i.e. on or before the 14th August)
Following the announcements on the 14th June, heavy volumes were traded during 3 of the past 4 market days.
Day 1, 15/06/2018 Vol: 194,504,258 Avg Price: 0.0030
Day 2, 18/06/2018 Vol: 37,878,864 Avg Price: 0.0040
Day 3, 19/06/2018 Vol: 27,231,516 Avg Price: 0.0040
Day 4, 20/06/2018 Vol: 4,073,906 Avg Price: 0.0035
Given the lack of ‘crowd’ awareness so far, I would think it has been a very simple price action so far, as per the pros' trading plan ‘Stage 1’.
My simplified analysis is the following (I could be seriously wrong):
Day 1 - not much pro involvement, long-time stale holders selling whilst know-how traders buying
Day 2 / 3 – Mainly pros and day traders taking profits (33% to one bag)
Day 4 – the rest day
I am keenly watching to see what pros want to do next. My gut feeling is that pros' Stage 1 is yet to complete. They might want to take the price down and keep at 0.3c for a few days until they get their refill.
I am not expecting the price to rise to 5 pips until then, but wanting a safer entry price for the tip by putting it at this stage.
All in my opinion, and I have been terribly wrong a number of times. Also bear in mind that the register is huge and anyone who bought between August 2014 and the 14th June 2018 are sitting between break-even and 3 bags at 0.4c.
Disclosure: I hold, and have buy and sell orders at multiple price points.
(20min delay)