Monday, June 1, 2015
Dalradian: riddle me this
IKN - look at that big fat finger buying Dalradian at the close!
I dunno if it was a fat finger. This silly buying happened on the last day of the month, and IKN notes there was other silly junior miner buying at 3:59 on Friday too.
I'm no market professional, but could it have been some junior gold fund (ETF or otherwise) who was seeing inflows this month, but which wasn't putting the cash into their stock basket because volume had disappeared, and for some reason had an "oopsie" moment at 3:59 and decided they had to fill the basket then? Is that possible? Permashave Dave, you wanna weigh in here?
I guess it's a stupid theory. But Sprott are stupid, aren't they? And they're known for letting fund price run away from NAV, right? And it's not like a fundmonkey cares what price he pays for basket stocks, right? He makes money off the management fees, he could care less about performance.
In any case:
It seems that silly spike has attracted above-average volume into the stock today. Maybe it's just stupid retail people thinking there's some big story. But, again, at this point in the junior gold miner cycle, stupid can pay the bills, no? And I guess if you bought Dalradian at $0.88 weeks ago, or at $0.65 months ago, you probably know enough about the stock that you don't want to sell it to some newcomer. It's not like DNA has a reason to suck in the future, beyond perhaps a coming collapse in the gold price.
I guess Friday wasn't enough of a kick to break it above the handle formation though. Unless the Friday 3:59 pop was a giveaway that there are entities out there still intending to accumulate more DNA this summer, but who aren't seeing the necessary volume. I'll enjoy watching this play out, anyway.