the ultimate buy signal, page-12

noiprocs...

Yes, the FDL observations are a good one...many have taken profits there and will be looking for the next trader special to go off.

In a way, we sort of don't want them...but in other ways we do.

The sorts of traders in FDL are the more sophisticated types, who typically have 2-3 month macro timeframes and with it, much larger appetites. Also, they actually feed off the smaller one-point wonders in the process...compounding their returns and burning them off in prep for the blow-off top day.

If they came to CVI, there would be plenty of attraction for everyone...and a very big push...then eventually payday.

These sorts of traders tend not to destroy a stock though, as we can see with FDL today, exiting with patience and discipline, in such a way that the vast majority of the rise (in this case from 1.5c to 20c or so, becomes sustainable...they do this due to the size of their positions, but also due to the often close relationship they form with management.

As I have said before...there are traders...then there are traders!

FMG owes some of it's success to this type of play...certainly in the early days, but also a little later...as does PDN and some of the smaller stocks like SDL and indeed FDL, which can thank such players for giving them an effective premium on their market cap...just when they needed it.

But…they need a decent story to work with…and whilst we may well see some “trader” funds jump across from FDL into CVI, I do not expect to see any seriously high volume trader sponsored surges ...well at least not given the current parameters surrounding CVI's fundamental equation, which for them will still be a little grey.

When CVI provide a little certainty however, I think the attraction will change pretty quickly!

If such a scenario were to transpire here…and I am not saying it will…then given CVI's potential upside, such a push would see many MANY multiples of the current price targeted, potentially achieving in a few months what might otherwise take years?

Interestingly, higher prices provide CVI with a greater capacity to acquire significant assets outside the Pensador model...I suggest this would be attractive to more than a few?

Anyway, meanwhile we watch on as CVI does its thing, which for mine is pretty bullish…just 2.87m shares traded today (so far), to not only arrest the fall, but send it back up to important levels today, a direct result of limited selling pressure…and at 12:40, we are just one trade of 120001 shares from the days high.

Lots of day...and week...still left!

lol

Cheers!