Upon reflection of the day’s activities, I have a theory as to what is coming that makes sense to me at least.
By way of a time line the directors put the company into suspension on ‘Uranium JV grounds’ but get the added benefit of time to do gas testing and further drilling. The unfortunate result of the suspension is however that T+3ers and nervous traders would look to exit immediately upon re-listing (still with me guys). The directors would know of the likely drop in share price upon opening so structure their releases to the market.
The directors take their time with the Uranium JV (which is positive by the way but secondary) and once the drilling and DST is complete they take the stock off suspension with the Uranium announcement released. The T+3ers and nervous nellies drive the price down in a rush and then we hit close. With all the sellers out of the stock it is now suitable to release to the market the testing and further drilling results, Friday afternoon. This will allow a full weekend to digest and re-open on a massive jump Monday morning.
If this theory has any basis the drilling announcement is likely to be positive to very positive. Why you ask? The reason the results are positive, is that if they were poor the directors would use the ‘Big Bath theory’ and send all the announcements together. That would have the impact of offsetting drilling to some extent with the secondary JV deal. If however the gas results are very positive you would want to clear the decks of sellers so as not to tarnish the positive announcement and get maximum mileage.
This is just a theory that I would implement if I were at the helm. We will know soon enough if it is true but I do point out I doubled my holdings today and feel extremely confident of positive things to come.
I am the Iceman!
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
