(1) Aggressive shorting, leading to... (2) Stops being hit causing more selling, leading to ... (3) Margin calls being made on those with margin loans.
Typically margin calls are made after 2 pm, and the big fall at 2:30 pm I suspect was a large group of shares being sold all at once. Whether that was due to a margin call, a stop-loss, or another reason I don't know.
EXT is now valued at US$3.55 per lb, assuming a resource size of 427 Mlb. This is based upon analysis of drilling reports by EXT. The actual resource is likely to be larger as there is always a backlog of drill results to be assayed, collated and reported. Therefore the actual value is probably closer to US$3 per lb, or even less.
This is astonishingly cheap. It wouldn't surprise me if the share price bounced tomorrow.
EXT Price at posting:
$7.04 Sentiment: LT Buy Disclosure: Held
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