I am looking forward to Dundee running out of shares. BMO Nesbit has been the big buyer, and likely benefeciary of all of this unceremonious dumping of stock. We simply wont have a steady foundation until this is done.
I try to place myself in the CEOs shoes, and picture how this year unfolded. The sp was certainly depressed all summer, and most of the juniors were after the spring sell off. I would have anticipated being able to extend the strike length of Friday, and have that news prop up prices in the fall. We would have also been trying to fix the position for the OSZ in the Deadwood Zone in various places, so that PEM could claim to have several more "Fridays" on the property. So, I have money for the drill season, and will likely get what I need for the next season from the warrant ending in Dec 17th. All seems good, at we look over the core samples, and see sulphidization characteristic of the OSZ coming out of the ground at Friday and Deadwood. t that point, I would have considered a PP while the sp was strengthening. I might be thinking of JVing out Friday, to help pay the cost for the new drill season if there were interested party(s) that would agree to decent terms.
Instead, the gambit failed, and drill results were late. The global markets have been unsteady, and cashing out while they look for clear direction. PEM was unfortunate not to have broad mineralization come up on one of the Deadwood holes, to prove the honey pot was there. Unfortunately, all we got was a heavy dose of geologic boundry information, which was interpereted as a colossal fail. Not so, but there is no patience in the market for uncertainly currently for other than stellar results. The ore body picture of Deadwood will have to wait for more drilling, more results and more waiting. (We are pending the results for a few holes).
So, the only steady trading pattern for (many) institutions, is to short equities, and grab puts to cover downside risk, while grubb around for cash to cover the shorts during tax loss season. Swarthy institutions that have the cash are grabbing position in these risky juniors that have good fundamental underpinnings.
So the dagger board is up (thanks to Dundee), we are trading at all time lows and and drifting sideways waiting for some wind. Unfortunately we are in a shipping lane, and drifting is not a good thing. (The analogy was spawned by spending a Holiday dinner on Alexandria Bay, while watching the tankers go back and forth in front of Bolt Castle).
I can only hope that Dundee will soon finish, we can drop down the center board, harden up to wind, and get out heck out of the way of the tanker-of-bad sentiment that is barreling down on us all.
