Anyway, A1 Minerals (ASX.AAM) collapsed to 15c in the last two days, so I bought back into this stock at 15.5c, having sold at 20.5-22.5c. Now 16.5c. I have decided to trade this stock in future because this stock is performing worse than gold is compensating. It therefore only makes sense as a short term trade to me. I guess it was never more than a medium trade anyway... until MGK demonstrates its potential. I am not aware of whether there is an underwriter who is destined to support the stock, however I argue that:
1. Gold price is about to have another rally - particularly in AUD terms
2. The new issue is priced at 18c, so the company will want a price of 20-22c to give shareholders confidence in taking up the issue.
3. Technically, 15c is a strong support, and the chart also suggests a rally to 22c (max), thereafter I expect a pull-back to 20c support, before moving higher...subject to a rebuilding of confidence.
That is about as much as I can predict with a company which discloses little and is always prone to surprise on the negative side....just like our 'arbitrary' government. This stock has to overcome a huge wall of doubt in my mind....as for government...they have no hope. Flawed fundamentally.
Andrew Sheldon www.sheldonthinks.com