I have been observing this stock for quite a while - watching it falling from $1.20 to a low of 70c (bought in at 77c on the rebound)
Yesterday's drilling report to me was an excellent one ie. high grade Fe with huge thickness - which junior iron ore company has such fanastic grades & thickness !!! So, nothing wrong with the report.
What was wrong yesterday, is that, the good news of report was leaked out and yesterday's morning trading pattern was erratic & heavy - as a result, I (like others) were tricked to sell-out (also had a funny trading pattern yesterday when stock suddenly dropped below 70c and rebounded up above 72c). I was subsequently forced to buy back at a slightly higher price as I can smell something good is forthcoming. These insiders bought about 500k of shares prior to announcement came out. I believe some have taken profits yesterday plus some this morning on opening. The last lots was dumped down to 82c but still higher than the insiders' buying prior to the announcement. I am very surprise that ASX is not investigating into this saga that should not happened.
As I said before, most insiders' selling appears been done and we should see prices recoverying from here for the FY30/6/09 by intos for their balance sheet.
Just one more thing - I hope the company will consider to merge with another junior iron company (with indicated & inferrred resources of 100 mt +) - there are quite a few out there that will like the idea as well
Just my opinion - DYOR
I can understand shareholders' frustration on this stock
AngelofAngels
UMC Price at posting:
84.0¢ Sentiment: None Disclosure: Held
