5 cents - various ways to put up walls... and to tear them down
posted on
Feb 24, 2014 06:42PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
Just some speculation on my part to stimulate some discussions on the topic (Note: I am not accusing anybody for having any shady scheme).
- Let's assume that a major shareholder with over 10% (e.g. 16% as an example) of KWG. This entity would be deemed as an insider regardless whether the entity has a representative at the BoD. Any buying and selling of the stocks by this entity must be reported the the Authority. Is this a correct interpretation of the rules?
As an aside, how many shares does CLF have currently. The last time when CLF voted against the supershares, it had something like 121M shares? Any info from anyone?
Question: If somehow the total # of shares remains constant, e.g. buying and selling the same number of shares. Is the entity required to report the selling and buying regardless.
Of course others can always do all this buying and selling for the entity so that it does not need to touch its own shares, but it would need to pay something for the service. The cost of paying for the service is small considering the potential outcome (huge gains). Take $0.05 -0.045 = $0.005, i.e. half a cent for each share. $2M shares changing hands would amount to $10k. But if ones are clever enough all thess transactions could be done by a group of people for zero cost, except for the time spent, which could be minimal if computer trading is used.
- At today's close, almost 2M shares were traded @ $0.05 (in 100-300k chunks, at costs between $5-15k per chunk which are not a lot of money if ones have spare/play money and believe in the bright future of KWG. This is one way to knock that wall (2M@ $0.05) down by genuine investors. However, this could also be done in a friendly group to hold up that wall for the nameless entity?
We only need 10 investors to buy 200,000 shares each to knock off that wall. Have this been done by a few of us today (by a show of hands)?
- If I had $6M spare (play) money I would keep on knocking off the walls @ $0.05 (if they dare to put them up). It should not take too long to get $120M shares (~16% of KWG). Somebody will run out of shares and I would become a majority shareholder (and an insider, with a seat at the BoD).
- If the walls are raised, say from 5 to 10 cents (most likely gradually, 5,6,7,8...10), then it would be profitable to sell some at say 9 cents. Buy low (@5) sell high (@8, 9).
Just some speculation for discussion.
goldhunter