In the wake of the Khandaker list, the market moved up abruptly and may even have been helped by some short covering on today's Easter Monday AM spike. We scaled out modestly starting at $6.20 through to $6.50. At midday writing, it had left a new high of $6.60. We have since replaced the portion sold earlier in the day just over $6.00.
Because there are at least a couple of announcements in the pipeline, coupled with the renewed strength in gold that we expected but finally set up Saturday Apr 3 with the clever 2-step process to defuse the China-US dispute over pricing the yuan, we are not changing our present stategy. The US does not interfere with China policy on Taiwan and Tibet, China helps with Russia and Iran, so by June we will see a new currency policy in place that leaves both sides with face intact.
In our view risk remains to the upside which explains why we are trading around a position, but not changing the position itself at this stage. The stock is now set for very strong support action as announcements arrive on name change, property acquistion, production success and wider stock listing. These are among the early preparations for a pricing level when a secondary offering is made in conjunction with that listing.
Since what I write is merely my analysis, not knowledge, the sequence and timing of events remains unknown. However, the course has been set, the wind is filling the sail and the ship is now moving forward.
No comments:
Post a Comment