Yes, that is my opinion. Financing is extremely significant news. Even if they secured just the debt portion at 70-75% which would be ideal, that is $700,000,000 - $750,000,000. The PR for financing would bounce all over the place and get picked up on Yahoo News. Bloomberg, Reuters and other syndicated news outlets. Other investors will see the PR's and the stock will show up on the top 10 gainers list which will drive even more buying fueled additionally by business reporters who will pick up on the story and report "NioCorp stock soars on financing news" which will drive even more people to buy. Even if they get a portion of the debt financing, say $200,000,000 - $300,000,000, that is a lot of money and that news will draw a lot of attention.
Even if the stock goes up 50%, it will draw more people in. As it draws more people in, the stock just keeps getting pushed higher and higher. 500-700% gain is not inconceivable on the day financing is announced given the size of the financing deal. The great news just feeds upon itself and if NioCorp positions when they announce news, for example just after the market closes or 2-3 hrs before the market opens, investors will jump in after hours or pre market and drive the price up even before the market opens. By the time the market opens, the stock is already getting noticed, the PR is out, articles will likely get written if the stock price soars and there would be a good chance that NioCorp makes it to the top 10 gainers list.
I do not think this scenario is inconceivable. If I am not mistaken, MolyCorp was the best performing IPO in 2010. This Team has experience running a winning horse. Don't underestimate them just because they are nice people or it has taken longer than we would like to get financing. They are also smart people and have a lot of experience building, managing and promoting mines.
In fact if it goes up even 50-300% initially, it would likely be in the top 10 biggest gainers pre market for that day which will attract more investors to pile on. Call it irrational exuberance but that's what happens when big news comes out for a company. I have seen stocks go up as much as 1500% in a day. It is rare, but it does happen. It all depends on how the PR is timed IMO.
So a run of 500-700% is possible after initial financing news and it is not inconceivable, if the timing of the news release is perfect, go up in excess of that amount. Over a period of a few days, the tsock will continue to go up but not as much as on the first day and then start to pull back. IF the stock did reach $10, I predict the stock would pull back to around $5-7/share.
This is why I am afraid to be out of the stock. That day will come IMO and if I'm not invested already, I have to pay more to get in or back in and I make less money.
Disclaimer: These are my personal opinions based on personal research and observations. Please do not rely upon my opinions when buying or selling equities. Please do your own research and due diligence and make your investment decisions based on your own research.
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