Friday, October 26, 2012

Copper Fox Timeline

The final review must be done today. Back in September we were told that the reviews were under way. For a complex document like the BFS a couple of weeks for the internal review is generous. For the external review a month should be allowed. Well, this is the earliest it can come if we go by what the company has stated at the Toronto show. I've put in an email to find out if we can expect to move on.

Arizona is ready for exploration. It would be nice to know when work will start there. This means money should be raised and crews hired. Yes, these properties could go with a full sale but they are not really in Teck's focus. Besides, what would we do next? If those properties were expected to go the company would be looking for others to retain. Why should we keep the name Copper Fox? It has a reputation and a lot of value in the name. So far there are no indications that we won't be keeping it.

What does the share price and volume tell us? For almost 2 years there have been 4 accounts that have been revolving the shared between them. This gives an average volume of about 240k a day. This volume is FAKE. If you chase the price the circular trading magiccally stops and the price drifts higher. When you move up and buy the trading resumes a few cents lower. This is a computer algo. No human can react that fast. Try selling some shares and the price drops but when the sale goes through the price goes up just enough to make you wish you didn't sell. Clearly, someone has an interest in controlling the trading.

The current price and volume is entirely artificial. The Securities commission is not ready to admit just how wide spread this practice is and it's probably illegal.

The message they want you to get is that there is fear.  Right after National staked out a big position followed by RBC we saw the return of the machine. The price plummeted to $1. We are headed to 1/2 a million shares on the TSX. Crazy isn't it. With the deal of the decade in Canadian copper it looks like nobody knows it's going down. If you take out the revolving shares there's nothing! Curiously today we are seeing the houses staggered. They are trying to disguise what they are doing. For the last year they made no attempt to conceal it at all. Only today.

I think my post about the BFS was correct. The high volume with little to no price movement verifies that the machine is very active but no retail is coming anywhere near this stock. This is unfortunate for the public. I suspect the data will begin to pour out Monday. I suspect the price will gap when the truth about the deposit and its sale becomes known but it will be too late for people to get in. After the halt to announce the sale this stock could easily gap $2 at the bell. I would not be surprised to see it gap over $4. How this goes down depends of whether we get the BFS and Mira report first or if all the info plus the offer comes at once. Talk about the market getting a blind side.

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