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Re: iVan_smith post# 569

Tuesday, 02/15/2011 3:34:53 PM

Tuesday, February 15, 2011 3:34:53 PM

Post# of 1606
I would not concern yourself with the price per share at least until we see after several months worth of trading how the market has finally come to fundamentally value the company.
You can find reasonable causality in the daily trading of a stock with the company AFTER the market has put in the time/events/volume/investor interest into the stock and only then can the stock properly mirror what is actually occuring with the story of the company. With this one, there is the company story and then there is the stock, they are completely disjointed right now. I think it may be as simple as the underwriter getting out of the extra (5%) number of shares they were forced to buy to fulfill the contract (underwriters have no place in holding securities long term) however they did it immediately into a stock with very little volume so it affected the pps substantially in the last week or so.
Before when trading was still halted I thought that with a high rights subscription turnout that investor interest would be high immediately and so even with an initial dump the buying pressure would be able to absorb it and the pps would spike up quickly but I guess I was wrong about the timing, forgetting about the new year holiday and all. It appears after todays trading though that perhaps the underwriter is finally finished dumping those extra shares and now the with volume picking up in the stock with normal traders/investors, DGTLF and 329 could finally start ticking up albeit slowly. I would not get to excited if the pps jumps in either direction, even a 20% decline or 20% spike would not turn my head with such little volume. I would say, if a day comes along where volume is above say 20M and pps is up over 40%, THEN I would say that the stock is STARTING to catch some momentum. Otherwise, hold long term and if the market gives you opportunities to accumulate, do so but do so slowly and methodically getting in at every price point you can.
cheers

GLTA