Apparently Merrill Lynch has released a detailed research note...

Apparently Merrill Lynch has released a detailed research note into Atlas Iron. When they issued the report at the end of last week, AGO was $2.30. They are now $3.20. They have set a atrget price of $6+.

People will take the detail in this research note and start comparing it to other companies in the sector to see where they stand and then will start to put 2 and 2 together.

This report has shaken up the whole sector, on top of the RIO/BHP contract talks breaking down with the steel makers and threats to turn their supply onto the spot market instead.

There has been constant talk of a lot of short selling of junior resource companies. Any more days like today and it is going to send the shorts scurrying for cover.