Current Trade

Friday, December 17, 2010

SWY.TO

Not allowing for the details... which are quite positive.... SWY.TO (Diamonds) is headed for a share consolidation... in the area of a post price $3.05... due to procuring solid financing with new blood... the whole deal appears to be for one of the few reasons a rollback of 5 to 1 can be justified as a necessary positive for growth as one analyst measures it and I agree.. ... However...  as a Market Motivator (share consolidations)... I'm sure most of the market will be surprised when it closes, and when it closes... the new price although justified may suffer.... The smaller shareholders will hold 1/5 of their original position (although worth the same), this will mean in some cases a pshycological adjustment, and a leverage problem for short term holders, and it will now effectively limit trading abilities, so they will trade out for cheaper shares they can hold large positions in. As a chartist this has been brought home to me on many occasions,,, The consolidation does however make it a very solid charting prospect for the 2011 Watch List with fundamentals like the details explain...  If your comfortable dealing with a $3.05/share stock, and own in excess of 5000 will = 1000 )and further amounts going up in 500 share blocks to avoid partial blocks shares... it may not be a concern for a long term hold...  short term is yet to be determined using technical analysis.

GLTA Lostoutwest


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