Ni, Co, Cu, PGM, Au Properties in Ontario Canada

Producing Mines and "state-of-the-art" Mill

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Message: Why Down?

Re: Why Down?

posted on Feb 13, 2008 07:25AM

The vast majority of shares are not being traded publicly. Just look at the daily volumes. 150k, 200k shares traded on a good day. The share sits untraded for an hour or two at a time, then suddenly swings up or down a few pennies as someone walks in and buys or sells at market price and drives the SP to the next bid/ask point. With only a few thousand shares sitting at most of the bid/ask points, the share price can walk fast with a 5k market price share purchase.

There are far too few shares trading to indicate aggressive manipulation of LBE's stock... and with daily volumes so low, there is going to be a significant amount of volatility in the daily stock price. There seems to be plenty of buyers available when the price drops a few pennies, so I'm not too worried.

If you're in for the long haul, like most of us are, then just ignore the daily price fluctuations. They are much less indicative of true company value and more reflective of low trading volumes. If the performance of the company comes in like we hope it will over the next 12 months, the share price will take care of itself in due time. I'm expecting to see the SP around $2.00-$2.25 by the end of this year.

If you've got a bit of free cash, a strong stomach for volatility and a disciplined investing technique, there is some money to be made by riding through these price fluctuations.

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