ALK 1.16% 43.5¢ alkane resources limited

Who is selling, who is buying?

  1. 1,239 Posts.
    That question came up in another thread, but I think it merits it's own:

    At 40cents, who is selling, who is buying? Here are my thoughts on the possible players:

    1) Selling
    a) traders who picked the shares up around 25c and are happy with 50% gain in a month
    b) longs who got caught when the SP suddenly went below 40c, something most longs never thought possible because of Tomingley. They often picked up more shares around 20c, and are now selling parts of their holdings for zero loss to free up some cash for other things.

    2) Buying
    a) According to LTL: Pump and dump - sheeple. Except for the fact that Tomingley alone is worth the current market cap ...
    b) Long term retail investors who see the merit of buying a free DZP option
    c) Our future strategic partner(s)

    Regarding the last point: Consider the possibility of e.g. Fidelity* (currently owning somewhere between 10 and 20% of Alk) being ready to buy 10% of the DZP for 100 million and giving us a big additional loan. They know that once news on that gets out, we would be trading north of 2 dollars. So for them it's a no-brainer to load up on as many shares as they can and wait for a five-bagger: With the CAP report done, the only serious obstacle left is financing. For Fidelity, that means basically zero risk, since - if need be - they can easily finance the DZP on their own (repeat after me: 1500 billion assets under management).

    *or ShinEstu or the Gandels or ...

    Of course, Fidelity knows how to play the markets, so that's no guarantee that we won't see a short time drop to shake free some shares. However, once they feel they have bought as many shares as they can reasonable get at these levels, we should just plow through resistance with minimal effort, given that the resistance on he way down was due to the fundamental value of TGP. With TGP up and running, there is no reason whatsoever to stay below that number.
 
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Last
43.5¢
Change
0.005(1.16%)
Mkt cap ! $262.9M
Open High Low Value Volume
43.0¢ 44.0¢ 42.5¢ $229.1K 532.3K

Buyers (Bids)

No. Vol. Price($)
7 81951 42.0¢
 

Sellers (Offers)

Price($) Vol. No.
43.5¢ 611 1
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Last trade - 16.10pm 18/09/2024 (20 minute delay) ?
ALK (ASX) Chart
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