I have no doubt this such resistance is the result of the last PP... see my previous post below... after-tax flow through shares at $0.25 and $0.28 cents will be sold by some proponents at a near double... some will sell all and some will sell half and keep remaining 'free' shares... necessary evil... like the options LOL... good news is that is will end... eventually... IMO we will have results in abotu a month or maybe even before... hopefully selling will be done by then or results will cause enough volume to easily soak it all up...
KXL trend for 2010 will be up IMO...
red911
Resistance...
posted on Jan 25, 10 09:58AM
"21,241,774 flow-through shares at a price of 65 cents per flow-through share"...
FWIW... That's 21 million shares at an after tax cost of about $0.28 for an investor in ON and about $0.25 for an investor in BC... Sure there is a 4-month hold period but 'institutional investors' have creative ways around this. Participants in this PP can literally sell now for almost a double... or sell half and have virtually free shares... IMO unless we get some totally unexpected news KXL will churn at this level (as it has been doind since PP) for at least the next few weeks... according to previous posters, next news, other than drilling announcements, is NI 43-101... likely 1 month away at the very earliest.
Don't get me wrong, once this necessary churning is over, I do believe KXL trend will be up for the remainder of 2010.
P.S. Great posts here lately BTW... you know who you are.
red911
